• The polka dot hodler is within the water
• Bullish situation stays legitimate if lows maintain
• Extra revenue might be anticipated above $7

It has been a tricky time for long-term Polkadot holders. After peaking at $56 within the second half of 2021, the DOT/USD trade price has moved south relentlessly.

It fell sharply from $56 to $5. It took Polkadot solely a 12 months to frustrate the bull.

And even now, with crypto rising in 2023, taking a look at day by day charts might be scary. In the end, it is laborious to discover a bullish argument as a result of the bounce from the lows appears to be like so small whenever you interpret the massive image.

Polka Dot Chart by TradingView

Polkadots Have to Overcome $7 Resistance Space for Bulls to Take Management

If you happen to zoom in, you may see a 2023 rally that has returned optimism to the cryptocurrency market. Positive sufficient, Polkadot has already returned greater than half of its year-to-date earnings.

Nevertheless, the nullification degree of the bullish situation nonetheless holds. Successfully, which means the current worth motion may very well be only a correction half of a bigger bullish pattern.

Polka Dot Chart by TradingView

Elliott Wave Concept states that impulsive actions (that’s, actions that began at the start of the 12 months) are adopted by corrective constructions, abc.

This abc that corrects the bullish pattern ought to comprise two waves transferring in reverse instructions (i.e. waves a and c) and one wave transferring within the route of the principle pattern.

So it is easy to say that the rally from the 2022 low is an impulsive construction and the autumn from the 2023 excessive is abc. On this case, the affect is bullish for the Polkadot and bearish for the USD.

Nevertheless, solely a transfer above the all-important $7 degree will cement the Elliott Wave bullish situation. Till then, the bulls could hope that the value motion sustains above the void space proven within the chart above.