- Polka dot hodlers are underwater
- A bullish state of affairs stays legitimate if the lows maintain
- A transfer above $7 ought to lead to extra good points
It was a tricky time for longtime Polkadot holders. The DOT/USD change price has been transferring south relentlessly after peaking at $56 on the finish of 2021.
From $56 to $5, that was a direct drop. It solely took Polkadot a yr to frustrate the bulls.
And even now, as cryptocurrencies have rallied in 2023, one have to be scared trying on the every day chart. In spite of everything, the bounce off the lows appears so small when decoding the massive image that it is arduous to discover a bullish argument.
Dot Chart by TradingView
Polkadot ought to overcome the $7 resistance zone for the bulls to have management
Zooming in, we will see the 2023 rally that introduced optimism again to the cryptocurrency market. Certainly, Polkadot has already returned greater than half of its earnings because the begin of the yr.
However the invalidation stage for a bullish state of affairs nonetheless holds. In impact, because of this the current worth motion might be nothing greater than a correction that’s half of a bigger uptrend.
Dot Chart by TradingView
Elliott wave principle states that an impulsive transfer (i.e. one which began initially of the yr) is adopted by a corrective sample, an abc.
This abc that corrects an uptrend ought to have two waves transferring in the other way (i.e. waves a and c) and one transferring within the route of the primary development.
Because of this one can simply say that the transfer from the 2022 lows is an impulsive sample, and the decline from the 2023 highs is the ABC. On this case, the implications are bullish for Polkadot and bearish for the US Greenback.
Nonetheless, solely a transfer above the $7 pivot stage would cement the bullish Elliott Waves state of affairs. Till then, bulls may need the worth motion to carry above the invalidation zone proven on the chart above.
