Polkadot (DOTUSD): The race begins now!

Polkadot (DOTUSD): DOTUSD

For Polkadot, we are setting our entry on the daily chart for a potential Wave 2. We expect it to reach between 61.8% and 78.6% because we don't believe the correction has been completed yet. We're leaning towards the idea that we're dealing with a Wave ((a)), as a closer look suggests we're seeing a five-wave downward correction, indicative of a potential zigzag correction for the Wave ((b)). Therefore, we shouldn't see too much upward movement before another downward movement occurs. The exact turning point in Wave ((b)) remains to be seen, but our scenario is clearly set between $10.85 and $11.30. Anything above that would require a closer examination, but we should not exceed this range. Then, we should move down to $8.24 to $7.25 to complete our overarching Wave 2. For Wave 3, we then expect a rise to at least $21.65, which represents a very significant increase with a very favorable risk-to-reward ratio.

Comment:

We largely anticipate that we still need to complete Wave ((b)). However, we also expect to see a subordinate five-wave structure emerging, which should stabilize between the 38.2 and 61.8% levels. We do not believe we should see further significant declines in the coming hours and days. Instead, we anticipate a reversal, quickly finalizing Wave (5) or (c) and ((b)). We think the price could rise up to a maximum of $11.13. Afterwards, we should see another downturn for the overarching Wave ((c)) and Wave 2.

Comment:

For Polkadot, we are increasingly approaching our entry zone between 61.8% and 78.6%. Thus, our assumption that we still need to complete Wave 2 seems to be correct. The question now is, where will this completion occur? We anticipate that in the coming days, we might dip below Wave ((a)), thereby activating and filling our entry. However, we do not expect to fall significantly below this level, as dropping below the 78.6% could potentially lead us down to $6. This could be somewhat unfavorable for Polkadot. While such a scenario could unfold in the future, it should not happen in the near term. Therefore, we firmly stand by the 61.8% level and await to see how things develop.

Trade active:

We got filled on our Long-Term Polkadot entry. Let's let things develop.

Comment:

So far, our entry for DOT has seen a pretty nice reaction, with an 8% gain since our entry at $8.24. We're expecting significant upward potential from here, with a substantial risk-to-reward ratio that we hope to capitalize on. We'll likely face resistance at our Wave 1 high around $11.90, which could be challenging to surpass. Current resistance at around $9.58 might also pose some difficulty. However, it's important to remember that we're building a subordinate five-wave structure here, so there's no need for panic even if there's a short-term pullback. For now we could but perfectly we should not fall bellow our current low at $8.11.