Cryptheory

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

DOT analysis – a reverse pattern is formed. Did the price find the bottom of the correction?

2 min read

DOT correction erased the entire previous rising trend and is currently in place in the key support zone where it can create a long – term minimum. The question is whether he will really succeed. Price creates potential reverse pattern, which, however, has not yet been confirmed and is not yet valid.

Polkadot forms a reverse pattern 123 bottom formation which has not yet been confirmed. It will come into force when the price succeeds exceed the last maximum in point 2. As we can see, at the same time the price would overcome the resistance from the maximum correction. In that case, the reversal of the trend would be confirmed and we would go into the short term growing trend.

DOT / USD 4HDOT / USD 4H. Source: TradingView

DOT is possible at the local minimum

On the confirmation 123 bottom formation ale the price may not fall under point 3. This means that even if the price does not exceed point 2, the next minimum must be at least as high or higher. If the price does not exceed the maximum, but at the same time the minimum is higher or the same, the price will be created sideway structure.

Such a sideway structure can also mean accumulation zone before further growth, but she has not been confirmed yet. In the short term, however, they still prevail bear volumes, and therefore also here that before real growth the price will have to cool down. It should also be forgotten that 123 bottom formation is only a short-term pattern in this case.

Leave a Reply

Your email address will not be published.