DOT: Wait For The Breakout?

21 apr 2021

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DOTUSD Statistics:

• Market Capitalization: 33B
• CryptoAsset Rank: #8
  
• 24-Hour Return: -1%
  
• 7-Day Return: -17%
  
• From All-Time High: -27%
  

Potential Catalyst:

• A conference call is taking place today to discuss Interlay's proposal to add a decentralized Bitcoin bridge on Polkadot and Kusama as common-good parachains. The call will be recorded.
  

Technical Setup:

• As with other cryptoassets, DOT looks to be in an ascending channel pattern.
  
• What sets DOT apart from its peers is that what we're witnessing play out is a trend that is eerily similar to DOT's most recent correction back in March.
  
• As shown in the 1D chart provided above, last month, DOT corrected -30% over the course of several days, traded below its lower Bollinger band, and rallied to the channel's resistance after bouncing off of the channel's support.
  
• Over the past few days, we've seen the same exact move. The only difference here is that DOT corrected -35% from its recent high of $48.
  
• Assuming history is set to repeat, we can use the prior uptrend to extrapolate from DOT's latest local low for better insight as to where DOT could be headed in the days/weeks ahead. As one will see, DOT could be in the early innings of hitting a new all-time high of roughly $52 - or rallying +45% from current price.