Polkadot was one of the market’s best earners in 2021, with the price action of the cryptocurrency speaking for itself. In reality, since December 28, the crypto-asset has risen by a staggering 300 per cent, a statistic that highlights its enormous rise in charts.
After avoiding corrections for a week, the asset seemed to be preparing for a drawdown phase. However, the crypto market structure flashed ambivalent signs at press time, with DOT registering a market cap of $14.97 billion while placing 4th on CoinMarketCap lists.
Polkadot 4-hour chart
In the 24 hours before the press time, Polkadot experienced a slump in the charts, with the commodity slipping to $16.42. However, the long-term map underscored the existence of an ascending triangle, a triangle that largely kept buoyant hopes intact. Furthermore, the Business Structure determined that the probability of a price change in the direction of a green line was valid. It should be remembered, though, that there have been instances of forgery in the past.
If the adjustment phase of Polkadot takes place over the next few weeks, the probability of a consolidation of the asset down to $14.50 is possible. One of the key factors for this will be market fatigue and the latest bay disparity over the growth of DOT over the last 2 weeks.
According to the Stochastic RSI, the crypto asset will report an instant pullback. However, historical movements suggest the DOT continues to stick close to the oversold area if the market drags down the indicator.
The Relative Strength Index or RSI indicated an uptick in sales pressure as the measure started to decline on the charts.
Finally, the Amazing Oscillator or AO pointed to an imminent turnaround of the pattern, with bears increasing in momentum.
The corrective duration has been unavoidable for Polkadot since the beginning of 2021 and can be mirrored in the charts over the next few weeks. Immediate funding of $14.50 can serve like a bouncing board before calculating a new bottom or peak.
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