- Polkadot price from a 36 day consolidation.
- The February 18th high becomes a stubborn resistance level.
- Speed, Cost and Stability Heading DOT Network Value.
Polkadot has struggled to build on the April 3 eruption over the past four days while the volume shows neither emotion nor engagement. However, the upside targets include the measured consolidation move and two Fibonacci expansion levels.
The Polkadot Prize may need a new catalyst
A correction of 33% after a rally of 800% from the end of December 2020 is a constructive development for DOT traders and small compared to the losses in other cryptocurrencies.
The current DOT breakout follows a 33-day consolidation, but it is proving to be a struggle to hit the February 18 high at $ 42.71. If resistance subsides, traders can look forward to a breakout of the Fibonacci extension of the February correction of 161.8% at $ 53.15. The measured move target of 33% places the next resistance level at $ 54.51.
Ambitious traders should see the 261.8% extension at $ 70.04 as a notable resistance.
DOT / USD 3-day chart
A pullback into consolidation is not uncommon, but it should keep the 50-day simple moving average at $ 36.07. If DOT melts through the moving average, the next layer of support will be the low of the consolidation at $ 27.55, followed by the 100-day SMA at $ 26.46.
A break in selling pressure would bring DOT to the 50% retracement level of the 2021 advance, followed by the 61.8 retracement level at $ 19.18.