In my previous looks at DOTUSD, I drew the dominant long-term pattern as an ascending channel with arcs up and down the channel.
Here I look at another possible dominant pattern: The giant wedge that has been forming since it was listed on Kraken, the first major US exchange to list it and have significant trading volume.
We see a few things looking at the pattern from this perspective. First, there is a nicely formed wedge pattern with well-established resistance around $55, and a well-established ascending support line that now gives support at $19.
$19 has also been a key resistance and support throughout DOT's history, as I highlighted (to the best of my limited ability) with some red circles. I'd expect this to be an extremely strong support level, limiting our likely downside from here.
Of course, if $19 breaks, it's probably time to cash out and wait.
If the price bounces as expected and follows the current green arc up, within a short time it will hit the resistance around $55.
If it can manage to break past that level, the price will easily get to $100 and beyond.
If that pattern plays out, expect resistance and downside when we intersect the previously formed red arc, and as it approaches $55, and then probably a backtest to that level as support.
Good luck and enjoy.
Here I look at another possible dominant pattern: The giant wedge that has been forming since it was listed on Kraken, the first major US exchange to list it and have significant trading volume.
We see a few things looking at the pattern from this perspective. First, there is a nicely formed wedge pattern with well-established resistance around $55, and a well-established ascending support line that now gives support at $19.
$19 has also been a key resistance and support throughout DOT's history, as I highlighted (to the best of my limited ability) with some red circles. I'd expect this to be an extremely strong support level, limiting our likely downside from here.
Of course, if $19 breaks, it's probably time to cash out and wait.
If the price bounces as expected and follows the current green arc up, within a short time it will hit the resistance around $55.
If it can manage to break past that level, the price will easily get to $100 and beyond.
If that pattern plays out, expect resistance and downside when we intersect the previously formed red arc, and as it approaches $55, and then probably a backtest to that level as support.
Good luck and enjoy.