DOT/USDT analysis: Polkadot approaching major resistance and supply area – what’s next?

December 10, 2023 04:54 AM AEDT | By Invezz

DOT/USDT analysis: Polkadot approaching major resistance and supply area – what’s next? — Image source: Invezz

DOT/USDT trading strategy

Buy/sell asset: Sell DOT/USDT
Entry price: $7.89
Stop loss: $8.47
Leverage: 1x
Take profit 1: $7.10
Take profit 2: $6.12
Take profit 3: $5.01
Timeframe: 1-2 weeks
Maximum profit: 36.4%
Maximum loss: %

DOT/USDT chart and technical analysis

Polkadot made a massive rally and gained more than 58% in the last couple of weeks. Currently, the price is reaching the $7.8 critical supply area and resistance level, from where it can make some drops.

I am expecting the price will drop to the $5.05 support level after retesting the $7.8 resistance level. The bullish momentum is already fading and candles are already indicating bearish pressure.

This is the third time the price has attempted to break above this level with no success. Probably it will be unable to break this level this time too. Price usually makes a correction after such gains and hopefully, it will retrace back to the $5.06 support level.

Polkadot fundamental analysis

Fundamentally, this week will be volatile as interest rate decisions will be announced on all major pairs.

The most important event this week is the Interest rate decision on the US dollar, if the rate is kept unchanged the price of Polkadot will likely drop. However, if the interest rate is lowered the price of all crypto pairs including Polkadot might rally further.

Polkadot to Tether trade idea takeaways

The price of DOT/USDT will possibly drop to the $5.01 support level in the coming days.
The price will possibly retrace to the $7.896 support level before the surge.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:5.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post DOT/USDT analysis: Polkadot approaching major resistance and supply area – what's next? appeared first on Invezz

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