Polkadot (DOT) popped yesterday on major news that the Polkadot project was ready to release its last piece of core functionality. Is this enough for a true upside break or is a fakeout forming as we speak?
Will Polkadot (DOT) Pullback After the Pump?
Back in mid-September, we spotted the uptrend in DOT/USD with a potential opportunity for long biased crypto traders to play that trend at better prices if they were bullish on the Polkadot project and token (DOT). The market eventually did pullback to our watch area (between $27.50 – $30.00), where buyers eventually did take back control at the end of September.
In October, it looks like the rally is back as DOT/USD has pumped nearly 50% in the last two weeks, with a good chunk of that move coming yesterday after the announcement from the Polkadot team that parachains will be here soon (Polkadot sets date for hotly anticipated parachain auctions). This is the final piece to for the Polkadot project to reach its vision of a scalable multi-chain world, so it’s no surprise that traders went bullish on DOT on the news.
Seeing as this could likely be more than a short-term catalyst for DOT, the move above the $38 resistance area is likely to draw in longer-term buyers. But given that this move came after an already solid run higher form the $27.00 major support area, it’s likely there will be some profit taking at these prices.
If we do see a pullback in the short-term, we’ll be watching the broken resistance area around $38 down to the rising ‘lows’ pattern/minor support area around the $32 handle for support to form. Bullish reversal patterns plus continue broad bullish sentiment for the crypto space would likely draw big buyers in and potentially resume the longer-term trend higher in DOT/USD.
What do you all think? Will we see DOT dip after yesterday’s pump or will the crypto asset rip higher from here as traders anticipate the start of a new multi-chain network?
