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Crypto Trader Says Altcoin Markets Approaching a ‘Historic’ Retest, Deep Dives Into Polkadot (DOT)

source-logo  dailyhodl.com 24 November 2023 21:17, UTC

A widely followed crypto analyst is diving into the altcoin markets and interoperability blockchain Polkadot (DOT) in particular.

Pseudonymous crypto trader Rekt Capital tells their 371,000 followers on the social media platform X that the overall market for altcoins is approaching a market cap last touched around August of 2022.

“Historic retest for the Altcoin Market Cap.”

Source: Rekt Capital/X

Looking specifically at Polkadot, Rekt Capital says the platform facing a retest of its own.

“Polkadot is in the process of retesting the top of this macro market structure in an effort to confirm the breakout.”

Source: Rekt Capital/X

Rekt Capital dives deeper still in the latest edition of their Altcoin Newsletter. According to the trader, DOT has already begun the process of breaking a downward trend.

“Polkadot is in the process of breaking its Falling Wedge resistance.

Monthly Close like this would be a very good start to confirming the breakout, especially since there are promising technical signs of DOT successfully performing a retest on the Weekly timeframe of the top of this wedge:”

Source: Rekt Capital/Altcoin Newsletter

According to the trader, DOT putting up a monthly close above the falling wedge is necessary for bullish sentiment.

“A useful way to think about this is that this current Weekly retesting is necessary for DOT to secure the Monthly Close above the pattern top.

And after a Monthly Close outside of the pattern, technically DOT could still enable a dip into the same area in December, but that dip would be part of a Monthly retest as a final step to fully confirming the breakout.

Slowly, DOT is preparing itself for a macro uptrend.”

DOT is worth $5.27 at time of writing, up 2.4% on the day.