fxstreet.com
- DOT price is forming a new range between $14 and $16.
- Polkadot price has breached the consolidation trend line.
- Invalidation of the no-trade zone is a breach of $17.20.
Polkadot has questionable price action that needs further narrative before forecasting anything more than a 12% rally for the bulls. Traders should consider looking for more profitable opportunities.
Polkadot price is questionable
Polkadot price is portraying itself as an unfavorable digital asset lately. The DOT price has whipsawed liquidity on both sides of the playing field to start the month of May. The erratic price action displayed from DOT price could be Market Makers' attempt to form a new range within the $14-16 zone. If the technicals are correct, the Marker Maker's strategy will confine the DOT price within the zone for days to come. There could be much better opportunities in the Crypto ecosystem as a whole. Therefore it is best not to trade this digital asset until more evidence of a directional trend is displayed.
Polkadot price provides further confluence of the tight range in play as the price has breached the consolidation channel. Buying the lows could be a high-risk entry since breached trend channels are typical of wave three price action. Shorting the digital asset before retesting the breached trend line could also be a trade setup doomed for failure as Market Makers could continue the false breakouts within the forming range.
DOT/USDT 12-Hour Chart
The invalidation of the no-trade zone will be a breach of $17.20. If this event occurs, analysts can deem the current downtrend as a corrective structure rather than impulsive. The DOT price could potentially rally back $20, resulting in a 40% increase from the current Polkadot price.