Polkadot (DOT) is potentially in the early stages of an upward parabolic move that could greatly increase its value.
Polkadot has been moving up since the beginning of July. It broke out of the horizontal resistance area of $ 41.35 on October 14. This was crucial as the area presented the last hurdle before a new all-time high.
DOT validated the area as support on Oct 27 (green icon) and the rally accelerated.
On November 2, Polkadot hit a new all-time high of $ 53.35. next resistance is at $ 73.53, created by the 1.61 Fib external retracement level when measuring the most recent drop. Since the price is at an all-time high, these Fibonacci levels are often used to estimate subsequent resistance levels.
Technical indicators support the continuation of the upward movement.
MACD, created by the short-term and long-term moving averages, is positive and ascending. This means that the short-term trend is faster than the long-term one.
Supertrend, which uses volatility to determine the direction of the trend, shows an uptrend as the DOT price is above the indicator line (green).
More importantly, the RSI has broken its bearish divergence trend line and is moving higher. This means that momentum is strengthening at the same rate as price increases.
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wave count
wave count also supports the continuation of the upward movement at a rapid pace.
It suggests that the DOT is on wave three of a five-wave up move (orange). first potential target for the high is $ 85. This would give waves 1-3 a 1: 1.61 ratio, which is common in such upward movements.
Considering the resistance at $ 1.61 to $ 73, the entire $ 73-85 region could serve as a potential area for a local high.
DOT / BTC
Cryptocurrency trader @ Pentosh1 drew a DOT / BTC chart, indicating that it is likely to move to new all-time highs later on.
DOT / BTC pair shows an equally bullish chart.
pair has broken a descending resistance line that has been in effect since May’s all-time high. This is a sign that the current solution has come to an end.
Furthermore, both the RSI and the MACD support the continuation of the upward movement.
Next resistance is at 0.001 yen, at the aforementioned all-time highs. If the DOT explodes, it could rise to 0.0014.
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