Polkadot Forms A Bullish Reversing Pattern, But Remains Weak

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Cryptocurrencies have been uncertain since the crash about a month ago, which took them down in the biggest bearish move ever in this relatively new market. Cryptos lost between 50% and &0% of their value during that crash, which took Polkadot from just below $50, down to below $14.

The decline took the price below all moving averages, which didn’t provide any support whatsoever during that crash. Although, the big crash ended ad Polkadot has been making higher lows since then, while the highs during attempts to reverse the price, have been coming lower too. Right now polkadot is holding nearly half the gains from this year’s major bullish trend.

So, a triangle is forming in DOT/USD. Over the weekend this cryptocurrency formed a bullish reversing chart pattern on the daily time-frame. A small hammer candlestick formed on Saturday, which points to a reversal higher after the slight decline, while yesterday’s candlestick looks quit bullish.

Polkadot Live Chart

DOT/USD

Although, today we are not seeing a follow-through of the weekend bullish momentum, like in Bitcoin. The positive sentiment from Elon Musk’s comments are not filtering through the whole crypto market, so Polkadot is not benefiting from it.

The price has moved above the 20 daily SMA (gray), but it has stalled today. We are long on this crypto already, so we are holding on to our trade, hoping that Bitcoin breaks above $40,000 soon and pulls the rest of the crypto market up with it.



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