Polkadot has questionable price action that needs a deeper narrative before predicting anything more than a 12% rally for the bulls. Traders should consider looking for more profitable opportunities.
Polkadot price is questionable
The price of Polkadot is looking like an unfavorable digital asset lately. DOT price capsized liquidity on both sides of the playing field to start May. The erratic DOT price action could be an attempt by market makers to form a new range in the $14-16 area. If the technical data is correct, the market makers’ strategy will confine the price of DOT to this area for the next few days. There could be much better opportunities in the ecosystem Crypto in its entirety. It is therefore best not to trade this digital asset until more evidence of a directional trend is displayed.
Polkadot price provides further confluence of the tight range at play as price broke the consolidation channel. Buying the lows could be a high risk entry since trend channel breakouts are typical of the third wave of price action. This may interest you: Fantom Price Prediction: Analysts are optimistic about FTM’s future in 2022.. Shorting the digital asset before retesting the broken trendline could also be a doomed trade setup as Market Makers could continue false breakouts in the forming range.
The invalidation of the no-trade zone will be a breakout of $17.20. If this event occurs, analysts may view the current downtrend as a corrective pattern rather than an impulsive one. The price of DOT could potentially rally to $20, which would represent a 40% increase from the current price of Polkadot.
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