Two boring trading weeks in the DOT market played an important role in the future medium-term price movement. The Polkadot (DOT) price exit outside the local growth channel, on 4 March, was seriously alarming.
In the previous article, we wrote about the probable change in the balance of power in the DOT market. Also, we said about the possibility of the price correction up to $23.
The correction began, but sellers failed to fix themselves even below the mark of $31. From 4 to 7 March, sellers tried to take the initiative in the market. Though, looking at the trading volumes, which were several times lower than on 22-23 February, this sellers’ attempt to start a correction was more like childish games.
After 7 March, it became clear that buyers were preparing a foothold to break the liquidity zone of $38-40. And starting from 23 February, the DOT price began to move in a consolidation triangle with a flat top. According to statistics, more often, such consolidations break up.
Another confirmation of this scenario we can see on 16 March. Sellers again failed to continue the downward trend and update the previous local low.
Thus, the range of price movements in the consolidation formation is constantly narrowing. And by the end of March, the Polkadot (DOT) investors may be pleasantly surprised by looking at their deposit.
Buyers Aim Polkadot to Reach $54 Mark
Given the rather weak DOT price correction, which sellers were able to organize, the new growth momentum shouldn’t be weaker than the previous one.
The first significant problem for buyers may arise when the price collides with the mark of $54. The critical point of this scenario is around $26.5. If we look at the chart, this mark is much lower than the current triangle that was formed:
However, the price exit from the current triangle down will not mean a global reversal of the DOT market. In such a scenario, the consolidation corridor will simply expand and the probability of breaking the historical high will be significantly shifted in time.
Crypto Market Will Positively Affect the Polkadot (DOT) market
Analyzing the BTC market situation, we don’t see any signs of an alternative scenario for the Polkadot (DOT) price movement. In addition, pay attention to the DOTBTC pair chart, the target of our previous article has fully worked out:
Buyers were able to keep the range of the previous historical high and arranged consolidation to gain position for a new upward momentum. Therefore, if there are no unexpected anomalous changes in the crypto world, the nearest future for the Polkadot (DOT) market is quite sunny.