DeFi Index Reaches New ATH — Will DOT Follow Suit?

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In Brief
  • DOT has bounced at the $28.30 support area.

  • There is resistance at $48.4 and $61- $65.

  • The DeFi index reached a new all-time high on May 3.

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Polkadot (DOT) has been moving upwards, since bouncing at the $28.30 support area on April 23.

DOT is expected to continue moving upwards and eventually reach a new all-time high price.

Daily DOT Movement

DOT has been moving downwards since April 1, when it had reached an all-time high price of $48.36. The same day, it created a shooting star candlestick and dropped. 

The downward movement continued, until DOT bounced at the $28.30 support area on April 23. It has been moving upwards since. 

Currently, it is trading right at the $40 resistance area, which is created by the 0.618 Fib retracement resistance level. The next resistances are found at $48.40 and $61.70, respectively. 

Technical indicators are bullish, supporting the continuation of the upward movement. The MACD has given a bullish reversal signal. Both the RSI & Stochastic oscillator are increasing, the former having just crossed above 50. 

Therefore, the token is expected to successfully break out from the $40 resistance area and move towards a new all-time high.

DOT Daily Movement
Chart By TradingView

Wave Count For DOT

Cryptocurrency trader @Altstreetbets outlined a DOT chart, stating that it is likely to move to a new all-time high price near $60.

DOT Wave Count
Chart By TradingView

The wave count does indicate that the movement since March was a completed flat correction, likely as a part of wave four. If correct, it would indicate that DOT has now begun wave five. 

The most likely target for the top of the movement is found between $61 and $65. It is found using an external retracement and Fib projection.

Afterwards, the next most likely resistance area would be found at $84.

DOT Wave Count
Chart By TradingView

DeFi index

The DeFi index has been increasing since April 18. On May 3, it managed to reach a new all-time high price of $3,650. 

Furthermore, technical indicators support the continuation of the upward movement.

Similarly to DOT, we can use an external Fib retracement to find the next closest resistance areas. They are located at $4,319 and $5,620.

DeFi Index
Chart By TradingView

To conclude, DOT is expected to continue increasing and eventually reach a new all-time high price. A potential target for the top of the move is found between $61 and $65.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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