After Bitcoin (BTC/USD) fell from $66000 to $58000 in just three days, Polkadot (DOT/USD) also crashed by over 20%. However, Dot is now showing signs of reversing on Wednesday and this could be a great buy the dip opportunity for investors. Dot is now at a very crucial support level and if a reversal is seen from the $40 mark, investors could yield some great results by getting in early. Bulls are slowly coming back as many coins recovered from their lows during the day on Wednesday and investor confidence was also seen rising as the markets were slowly regaining the losses seen on Wednesday.
A closer look at the charts-
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Dot made a new high of $55 earlier this month however it has now corrected back to the origin of the previous rally and a reversal could be seen very soon.
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Dot has taken support at $40 and has also formed a bullish hammer indicating that a bullish rally could be seen very soon.
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If Dot is able to reverse from here a new all-time high could also be hit soon however investors have to be cautious with the supply zone at $46.
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Dot has also broken the 50-day moving average, which is suggesting that the correction could be over since it has corrected to the fib 0.618 level and an up move should be seen soon.
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The RSI also reached a support level on Wednesday and has reversed multiple times in the past as well from the same levels.
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Investors can look for entries above the levels of $41.5 and targets can be set at $46, $54 and even a new all-time high.
