- Polkadot (DOT) is currently in a corrective Wave II, with short-term downside risk towards the 5.3691 support level.
- Once the correction completes, DOT could enter a strong uptrend in Wave III, offering potential for long-term gains.
Polkadot (DOT) has been navigating a corrective phase in its price action, entering Wave II in an Elliott Wave structure. This stage indicates a temporary downturn before the cryptocurrency sets up for a potential bullish trend in the future. Let’s break down what to expect in the short, mid, and long term based on this technical analysis.
Short-Term Outlook: Wave C Correction
Currently, DOT is in the midst of Wave II, which has formed a classic A-B-C corrective pattern. In this phase, Wave A represents the initial strong correction from its previous highs, followed by a brief rebound in Wave B. The market is now expected to enter the final phase of Wave II, with a continuation of the downward correction seen in Wave C.
The key support zone to watch for in the short term is around 5.3691. If the price approaches this level, it will be a crucial signal that the corrective phase is nearing its end. A bounce from this support could indicate that Polkadot is getting ready for the next move up.
Mid-Term Outlook: Testing Key Support Levels
As Wave C continues to unfold, the price could test further support levels. The next significant level to monitor is around 0.650. If DOT breaks below this threshold, it would suggest that the corrective phase is deeper than initially expected, potentially causing more short-term downside pressure. Traders should be cautious in this period, as prolonged weakness could create buying opportunities at lower levels for those looking to accumulate for the next rally.
Long-Term Outlook: Potential for an Extended Uptrend
Once the Wave II correction is completed, Polkadot’s price is likely to shift gears and enter a new uptrend in Wave III. The third wave in an Elliott Wave structure is typically the most extended and powerful, often leading to substantial gains. As the broader market sentiment improves and corrective structures finish, DOT could experience significant bullish momentum.
If the price successfully holds at critical support levels and completes the Wave II correction, the long-term outlook remains positive. Investors can look forward to an extended upward move, possibly targeting new highs in the next phase of the market cycle.
Polkadot (DOT) is currently in the midst of a corrective Wave II, which includes Waves A, B, and the expected downward correction of Wave C. Short-term traders should keep a close watch on the support level at 5.3691, while mid-term forecasts suggest a test of the 0.650 support zone. However, once this correction is completed, DOT has strong potential for an uptrend in Wave III, offering optimistic prospects for long-term investors. As always, staying vigilant and monitoring key support zones will be crucial for navigating the market during this volatile phase.
