Polkadot [DOT] Price Analysis: DOTUSDT Gains 295% Riding Strong Bullish Volatility Expansion into Price Discovery

By Aziz Khan and Sunil Sharma
Published January 17, 2021 Updated January 17, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

Polkadot Price Analysis
IMG Source: Polkadot.network

Polkadot [DOT] Price Analysis: DOTUSDT Gains 295% Riding Strong Bullish Volatility Expansion into Price Discovery

By Aziz Khan and Sunil Sharma
Published January 17, 2021 Updated January 17, 2021

DOT price is having an impressive bullish expansion as in last few days it breached key POC S/R. DOTUSDT price action has managed to post multiple percentage gains with no clear signs of topping out as of yet. Key takeaways:

  • Key Weekly S/R Flip, POC technical confluence
  • Bullish Engulfing Price Action Close
  • Price Discovery Mode with no Climatic Nodes

DOT Price Analysis: DOTUSDT Weekly Chart

DOT Price Analysis: DOTUSDT Weekly Chart
DOT Price Analysis: DOTUSDT Weekly Chart https://www.tradingview.com/u/CoinGape/

Preluding to the chart above, DOT price does not have a long history of price action on the Weekly timeframe. We can however establish a key Weekly S/R zone that has been breached with conviction. DOT price action previously had been rejected on multiple attempts – causing it to trade in equilibrium before a strong bull break.

A key technical confluence at the Weekly S/R was the Point of Control, a strong value area where high transactions occurred. Breaking above this signaled a true break as momentum started to come in with a Bullish Engulfing Candle. Price Action at the time established a Local S/R as the second Bullish Volatility Expansion occurred.

Price Action as of current is trading in Price Discovery with no valid climatic volume nodes. Climatic nodes are indicative of temporary tops and or bottoms being set after strong volatile moves. DOTUSDT’s immediate nodes are increasing so there is a probability of further upside. How this coming weekly candle closes and opens will dictate the immediate trend direction.

What’s Next for DOT Price?

In conclusion, DOTUSDT remains in price discovery with further upside being probable as there are no signs of a temporary top being set. It is important to monitor how the weekly closes in response to the volume profile. A climatic node as mentioned earlier will be indicative of a temporary top being set. As of current the higher timeframe remains bullish until proven.

Hope this article helps when making discretionary decisions. Follow us on trading view for latest crypto price analysis. 

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil Sharma
234 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Loading Next Story