Polkadot (DOTUSD): The End of an Uptrend

Polkadot (DOTUSD): DOTUSD

Polkadot appears to have completed Wave (2) with a notable level of certainty. Upon further analysis, it increasingly seems we're witnessing an ending diagonal pattern. This indicates the potential conclusion of the current uptrend shortly, leading to a corrective downturn for Polkadot. While Wave 1 could theoretically extend to $12.82, such a scenario appears less probable. The key factor now is whether we can breach the trendline. Should we remain confined within this diagonal pattern, a prompt downward shift may be expected. For Wave 2, our strategy involves repositioning within the 50% to 78.6% Fibonacci retracement zone. Yet, we must wait to detect any signs of weakness in Polkadot before making our move, as navigating decisions amidst its ongoing bullish momentum presents a considerable challenge.

Comment:

For Polkadot, we've witnessed exactly what we anticipated - the completion of our Wave 1. We were somewhat confirmed in our assumption from a week ago that we might see an impulse upwards, typical for a Wave ((v)), which shoots up but then sells off sharply. This is precisely what we observed, indicating we've likely formed Wave ((a)). We still believe we are currently in the overarching Wave 2. Therefore, we expect a three-wave impulse towards either a Regular Flat or an Expanded Flat for Polkadot. On closer inspection, we've identified a three-wave impulse leading to Wave ((a)), leading us to anticipate another three-wave impulse upwards. This should reach between 100% and 138%, or between $11.85 and $12.85 as the maximum. If we break higher, we'll need to reevaluate our analysis. Until then, we maintain our stance, expecting the completion of Wave 2.