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Polkadot Price – Bull Signals, Upside Forecasts

Steve Miley trader
Updated 26 Oct 2022

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Key points:

    • Surge Sends Short-Term Bullish Signal
    • Larger Basing Intact and Reinforced
    • Upside Targets

A surge higher for Polkadot this week has produced a bullish technical analysis signal on the chart. This positive price action has reinforced a short-term basing and also an intermediate-term bottoming, and sets the risk for a higher price forecast.

Surge Sends Short-Term Bullish Signal

Alongside the wider cryptocurrency market, Polkadot (DOT) posted solid gains on Tuesday 25th October, also in line with a wider “risk on” theme seen across financial markets assets, led by the recent robust gains in US and global equity markets.

This broader “risk on” theme has been driven by a combination of a widely better than expected US earnings reports for Q3 and easing fears regarding global central bank hawkishness and worldwide inflationary pressures.

Specifically, for Polkadot, the impulsive advance from Tuesday has seen the market surge above the mid-October swing peak at 6.30, up to 6.62 to complete a Double Bottom pattern in relation to the October dual lows at 5.69 and 5.73. This is a short-term bullish reversal signal, which was reinforced by the push also above another October swing high at 6.54.

Also read: Top 10 Crypto Investors To Follow On Twitter

Polkadot Daily Chart

Larger Basing Intact and Reinforced

Tuesday’s rally also saw Polkadot reverse up through the down trend line from mid-August (off of the 9.65 peak through the mid-September high at 8.05) for a more significant, intermediate-term bullish signal. This positive price action has seen a confirmation of a large bullish falling wedge pattern, reinforcing the intermediate-term bottoming pattern that has been building not just from late September, but also since the Q1-Q2 bear market low was posted at 5.99 in mid-July.

This broader basing activity points to a more sustainable bottom and recovery for not just the short-term, but also for the intermediate-term recovery, and even into the longer-term.

Upside Targets

The upside targets for late October and early November are the late September peak at 6.80 and then the 7.15 level. Through here for November would open up a higher swing target at 8.05. Going out into year-end, the threat will be for a more robust advance closer to the August swing high at 9.65.

Should the DOT market revert back to the downside, the risk will be for a challenge down to the October dual lows at 5.73/69. Surrender here would then open up risks for latter 2022 down to 5.50, even as low as 3.50.

Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.