Polkadot (DOT/USD) has fallen by over 50% from the highs that it hit in November, it has now reached a very crucial price zone which could be the zone of reversal. Dot has been correcting ever since it hit a new all-time high in November and has fallen by over $30. investors are waiting for a reversal due to the huge correction in Dot.
Many investors are now questioning if Dot will be able to sustain over the supporting trendline. Sustaining over the trendline will be extremely important as Dot can fall a further 50% if it is not able to sustain above the trendline. However, if a reversal is seen a huge rally could be seen soon however investors are not sure whether a reversal will be seen. Thus should you buy the dip in Dot?
Here is what the charts are pointing towards-
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Dot has formed a wedge and has fallen from the resisting trendline to the supporting trendline in a month, which was a 50% fall.
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Dot is now at the supporting trendline and is showing signs of slowing down which is suggesting that a reversal could be seen soon. Thus it is looking like a reversal will be seen from the lower trendline and that Dot could start a rally towards the upper trendline.
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Investors must be cautious as Dot is still making bearish candles, such as the candle on Monday where Dot fell by over 12%. Moreover, no signs of strength can be seen either thus investors must take a long entry only once a clear reversal is seen or once Dot crosses $30.
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Investors can set a target of 38, followed by $45 and eventually a new all-time high.
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A stop-loss can be maintained at $22.
