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DeFi Index Reaches New ATH — Will DOT Follow Suit?

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Polkadot (DOT) has been moving upwards, since bouncing at the $28.30 support area on April 23.

DOT is expected to continue moving upwards and eventually reach a new all-time high price.

Daily DOT Movement

DOT has been moving downwards since April 1, when it had reached an all-time high price of $48.36. The same day, it created a shooting star candlestick and dropped. 

The downward movement continued, until DOT bounced at the $28.30 support area on April 23. It has been moving upwards since. 

Currently, it is trading right at the $40 resistance area, which is created by the 0.618 Fib retracement resistance level. The next resistances are found at $48.40 and $61.70, respectively. 

Technical indicators are bullish, supporting the continuation of the upward movement. The MACD has given a bullish reversal signal. Both the RSI & Stochastic oscillator are increasing, the former having just crossed above 50. 

Therefore, the token is expected to successfully break out from the $40 resistance area and move towards a new all-time high.

DOT Daily Movement
Chart By TradingView

Wave Count For DOT

Cryptocurrency trader @Altstreetbets outlined a DOT chart, stating that it is likely to move to a new all-time high price near $60.

DOT Wave Count
Chart By TradingView

The wave count does indicate that the movement since March was a completed flat correction, likely as a part of wave four. If correct, it would indicate that DOT has now begun wave five. 

The most likely target for the top of the movement is found between $61 and $65. It is found using an external retracement and Fib projection.

Afterwards, the next most likely resistance area would be found at $84.

DOT Wave Count
Chart By TradingView

DeFi index

The DeFi index has been increasing since April 18. On May 3, it managed to reach a new all-time high price of $3,650. 

Furthermore, technical indicators support the continuation of the upward movement.

Similarly to DOT, we can use an external Fib retracement to find the next closest resistance areas. They are located at $4,319 and $5,620.

DeFi Index
Chart By TradingView

To conclude, DOT is expected to continue increasing and eventually reach a new all-time high price. A potential target for the top of the move is found between $61 and $65.

For BeInCrypto’s latest BTC (BTC) analysis, click here.

The post DeFi Index Reaches New ATH — Will DOT Follow Suit? appeared first on BeInCrypto.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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