A widely followed crypto analyst delves into the altcoin markets and in particular the interoperability blockchain Polkadot (DOT).
Pseudonymous crypto trader Rekt Capital tells their 371,000 followers on the social media platform
“Historical Retest for Altcoin Market Cap.”
Looking specifically at Polkadot, Rekt Capital say the platform faces its own retest.
“Polkadot is retesting the top of this macro market structure in an attempt to confirm the breakout.”
Rekt Capital dives even deeper in the latest edition of their Altcoin newsletter. According to the trader, DOT has already started the process to break a downward trend.
“Polkadot is breaking through its Falling Wedge resistance.
Such a monthly close would be a very good start to confirm the breakout, especially as there are promising technical signs that DOT is successfully retesting on the weekly time frame of the top of this wedge: “
According to the trader, it is necessary for DOT to place a monthly close above the falling wedge for bullish sentiment.
“A useful way to think about this is that this current weekly retest is necessary for DOT to secure the Monthly Close above the pattern top.
And after a monthly close outside the pattern, DOT could technically still allow a dip in the same area in December, but that dip would be part of a monthly retest as a final step to fully confirm the breakout.
Slowly, DOT is preparing for a macro upward trend.”
DOT is worth $5.27 at the time of writing, up 2.4% on the day.
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Featured image: Shutterstock/MicroOne