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Polkadot price is more than 50% below its all-time high. The downside moves it has experienced are the most bearish since May, but the tables may soon turn in the bull’s favor.

Polkadot price is in its sixth consecutive week of creating weekly candlesticks with closes below their open. It is also the seventh weekly candlestick in this corrective move. In Gann Analysis, W.D. Gann wrote that he considered a forty-nine to fifty-two-day move in a single direction a ‘death zone’. Gann wrote that instruments that fulfill the criteria of his ‘death zone’ cycle have an extremely high likelihood of experiencing a countertrend move or broader trend correction.

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Evidence of an imminent bullish reversal for Polkadot price can be seen on the 0.25/3-box dollars Reversal Point and Figure Chart. A Bullish Shakeout Pattern is currently present. This is one of the single most potent and bullish signals in Point and Figure Analysis. That it appears at the first test of the new uptrend is a highly positive sign.

The theoretical trade setup for Polkadot price is a buy stop at 27.25 dollars, a stop loss at 26.25 dollars, and a profit target at 35 dollars. This trade represents a 7.75:1 reward for the risk. This trade is valid if the current O-column does not drop below 25.75 dollars. A three-box trailing stop will help protect any implied profits post entry.

However, sell-side pressure and downside risks remain. The $1.00/3-box reversal chart shows a very bearish setup in the form of a quadruple bottom. The hypothetical short trade is a sell stop order at 24 dollars, a stop loss at 27 dollars, and a profit target at 14 dollars. The short idea is the least likely to play out, and the downside movement may be limited to the $20 value area.

You can buy and trade Polkadot from here.

Polkadot (DOT) ready to bounce to 35 dollars

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