Polkadot $DOT Will Reach $50 by The End of February, HERE IS WHY
This will be most likely one of the last of my analysis on $DOT in the short term, so tune in and enjoy the ride!
INTRO, Polkadot $DOT established its first predictable cycle and appreciation band which is now tightly followed by the traders as cryptocurrency market entered the bull season. Each cycle appears to last 20 days on average (marked by red vertical lines) and boosts the valuation up to 120% per cycle from each local bottom. As long as the bull market remains intact (as indicated by the $BTC price action) we can assume this support band will hold given strong technological fundamentals of the token and hundreds of projects being actively build on top of polkadot (making it fully legitimate ETH competitor and not an unsustainable PnD such as almost all of other tokens in the TOP10 CMC ).
FOR THE PLANCK LENGTH TERM, each milestone (psychological valuation of the asset or price shift action as indicated by the candles) creates a rectangular region (horizontal red band) acting both as support or resistance depending from which side (top or bottom) those regions are being crossed by the candles. Currently (at the time of posting) we are in the SUPPORT 2 area which if broken would become a RESISTANCE 2 and so on, if RESISTANCE 3 is crossed then the area would become a SUPPORT 3. You can't really predict price movements here but based on your risk tolerance you will know where to buy in if you find yourself late to the party in any give point of time and do not want to blindly FOMO in.
FOR A SHORT TERM, each cycle is constrained within the long term price band (green/blue), the lowest possible valuation we can achieve in the current Polkadot micro-cycle is around $17.5 (this can only happen if bitcoin would strongly correct down. The meantime the highest valuation in this micro-cycle should not be much higher than $33. The lowest possible valuation we can achieve in the next micro-cycle starting February 21'st is $26 and the highest should not exceed much more than $58.
FOR THE LONG TERM, Strategy to follow in order to maximize the profits during this bull cycle is to buy $DOT in the lower blue band region and sell in the higer (upper) green and blue region of the price band. Because $DOT is outperforming BTC we can assume this is the most optimal currency to trade or simply buy in lower blue and hodl for those who prefer less risky approach.
SUMMARY, It's more than likely bull market will last past March making the TOP for $DOT in the region of $90 up to $150 and the absolute BOTTOM $76 which are not too crazy numbers. I would recommend to be carefull beyond those price range and especially after $76 is reached you should implement a slow cashout strategy. If you have any questions or want to see more posts like this click the follow button and add a comment below.
INTRO, Polkadot $DOT established its first predictable cycle and appreciation band which is now tightly followed by the traders as cryptocurrency market entered the bull season. Each cycle appears to last 20 days on average (marked by red vertical lines) and boosts the valuation up to 120% per cycle from each local bottom. As long as the bull market remains intact (as indicated by the $BTC price action) we can assume this support band will hold given strong technological fundamentals of the token and hundreds of projects being actively build on top of polkadot (making it fully legitimate ETH competitor and not an unsustainable PnD such as almost all of other tokens in the TOP10 CMC ).
FOR THE PLANCK LENGTH TERM, each milestone (psychological valuation of the asset or price shift action as indicated by the candles) creates a rectangular region (horizontal red band) acting both as support or resistance depending from which side (top or bottom) those regions are being crossed by the candles. Currently (at the time of posting) we are in the SUPPORT 2 area which if broken would become a RESISTANCE 2 and so on, if RESISTANCE 3 is crossed then the area would become a SUPPORT 3. You can't really predict price movements here but based on your risk tolerance you will know where to buy in if you find yourself late to the party in any give point of time and do not want to blindly FOMO in.
FOR A SHORT TERM, each cycle is constrained within the long term price band (green/blue), the lowest possible valuation we can achieve in the current Polkadot micro-cycle is around $17.5 (this can only happen if bitcoin would strongly correct down. The meantime the highest valuation in this micro-cycle should not be much higher than $33. The lowest possible valuation we can achieve in the next micro-cycle starting February 21'st is $26 and the highest should not exceed much more than $58.
FOR THE LONG TERM, Strategy to follow in order to maximize the profits during this bull cycle is to buy $DOT in the lower blue band region and sell in the higer (upper) green and blue region of the price band. Because $DOT is outperforming BTC we can assume this is the most optimal currency to trade or simply buy in lower blue and hodl for those who prefer less risky approach.
SUMMARY, It's more than likely bull market will last past March making the TOP for $DOT in the region of $90 up to $150 and the absolute BOTTOM $76 which are not too crazy numbers. I would recommend to be carefull beyond those price range and especially after $76 is reached you should implement a slow cashout strategy. If you have any questions or want to see more posts like this click the follow button and add a comment below.
