Polkadot, an Ethereum rival, has built momentum for its next major price move according to influential crypto trader Pentoshi. The price of Polkadot’s DOT token is up a modest 3% today to $4.49, after a popular crypto trader expressed bullish views on the asset.
Pentoshi, a pseudonymous trader with over 700k Twitter followers, tweeted that he loves DOT’s long-term chart, which shows the current price returning to where the largest price move originated in 2021. As he put it, this is a matter of having patience for the market to switch from “greed to fear, and fear to greed.”
In a follow-up tweet, Pentoshi said his bullish view would be invalidated if DOT closed below $3.98. This implies he sees support around that $3.98 level and expects DOT to hold above it.
Pentoshi’s tweets suggest he is taking a long-term outlook on DOT. By referencing the “highest timeframe” charts, he is looking at weekly or monthly charts to identify areas of major support and resistance. The $3.98 level marks an important support zone on the weekly chart.
The current DOT price of $4.49 puts it right around a resistance zone between $4.20 and $5.70. So while momentum may be stalling at resistance presently, Pentoshi expects DOT will eventually break above it, as long as $3.98 holds as support.
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Momentum is bullish but inflecting for DOT. The MACD line remains above the signal line in positive territory, and the RSI is holding above 55. However, MACD histogram bars are declining, indicating momentum may have peaked. However, as long as support around $3.90 holds, DOT could consolidate here before attempting to break out above $4.20 and rally towards $5.70.
Pentoshi will be watching DOT closely for a weekly close below $3.98, which would invalidate his bullish thesis in the short-term. But for now, he and other DOT bulls are likely waiting patiently for confirmation of a bullish trend reversal as the crypto market transitions from fear to greed.
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