Polkadot (DOT) priceremains inside the volatile and unstable ‘Ichimoku Cloud’. A successful breakout and close above key resistance levels on the weekly chart could trigger new all-time highs.
On the other hand, downside risks in price continue. Polkadot (DOT)It’s actually quite unfortunate, being trapped inside the Ichimoku Cloud. Cloudy; represents indecision, volatility, misery, whiplash, and pain. This is where trading accounts go to die. However, a successful move outside and above the Cloud will create extremely bullish trading conditions.
Polkadot price needs a weekly close of $33 or higher. However, exceeding this level does not complete the work, of course. Polkadot must exceed the following levels in order:
- 50% Fibonacci retracement at $26.
- The ‘control volume point’ at $28.75.
- Top of the Cloud (Senkou Span A), available at $30.
- 38.2% Fibonacci retracement at $38.2.
- Kijun-Sen level at $33.
In summary, Polkadot price needs to close above Cloud and weekly Kijun-Sen. However, Tenkan-Sen remains above the close, although the slope of its line indicates that it may not remain as resistance. Additionally, a close at $33 will position the Chikou Span open (this is a necessary condition for a clear break higher).
A hypothetical long entry would be a buy stop of $33, a stop loss of $23 and a profit target of $125.
The profit target is just above the 100% Fibonacci expansion at $123.50. The trade pattern represents a 9.2:1 reward/risk with an implied profit target of over 325% from entry.
However, until the entry is confirmed, polkadot pricemay continue to face some significant whiplash in price action, especially given the current structure of Cloud. Additionally, downside risks are substantial, near-term Ichimoku support is now under the Cloud (Senkou Span B) ($15).
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.