Polkadot (DOT) Retains Bullish Bias despite Plunges, Targeting $50

  • DOT price somewhat endured the selling momentum seen across the broad cryptocurrency market.
  • Polkadot remains somewhat unchanged regardless of the drop, keeping its stable support area.
  • Beartrap pattern on Pont & Figure chart shows short-term bullish strength.

Polkadot (DOT) price maintains its price movements inside the range from 38.2% FIB retracement of $31 and 50% FIB retracement zone at $26. Nevertheless, the Point & Figure chart indicates a potential bear trap for the alt.

DOT Price Might Trigger Bullish Reversal, Eyeing Highs of $50

Polkadot appears ready to surprise market participants and shift into a bullish market. The Point & Figure chart shows a massive bullish confluence for the token around the Bear Trap pattern entry-level, emerging on the $1.0/three-box reversal. DOT will authorize a bear trap setup and break past the bearish trend-line if the highlighted entry develops. With that, the alternative coin will shift its narrative to a bullish marketplace.

The theoretical Bear Trap setup is a $50 profit target, $28 stop loss, and buy stop-order at $32. The formation shows 4.5:1 risk/reward and implied 60% profit from DOT’s entry. A two – to three-box trailing will safeguard profits made after entry.

DOT price may move a box lower towards $25 before triggering the entry. If that happens, the Bear Trap formation will mean a bearish fakeout pattern – a highly bullish reversal formation. Nevertheless, a crash towards $24 before triggering the entry will ruin the theoretical setup.

Meanwhile, the overall crypto market saw prices crashing on Wednesday night. That came after Fed Reserve’s minutes signaled that the central bank might raise interest rates to cab high inflation. The news had Bitcoin on a sharp plunge towards the $42,500 value area.

While publishing this content, BTC traded at $41,678. The bellwether crypto should rise past $45,000 to trigger short-term bullishness. Nevertheless, Bitcoin requires a steady move past the $50,000 psychological level to support positive actions in the entire market.

Upside price actions by Bitcoin will improve sentiment in the altcoin market. With that, tokens such as DOT will have a healthy environment to trigger uptrends. Though Polkadot kept its bullish bias within price drops, further crashes in the crypto spectrum will ruin the alt’s bullish structure.

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