After Bitcoin (BTC/USD) dropped from $66,000 to $58,000 in just three days, stüalso Polkadot (DOT/USD) declined by over 20%. However, Dot is now showing signs of a reversal on Wednesday. This could be a great opportunity for investors to apply the “Buy the dip” strategy.
Dot is now at a very crucial support level. If a reversal can be seen from the $ 40 mark, investors could achieve great results by a frühen entry. The bulls are slowly coming to the ck, as many coins recovered from their daily lows on Wednesday and investor confidence also rose, as the markets slowly made up for Wednesday’s losses.
A closer look at the charts:
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Dot reached a new high of $55 earlier this month, but corrected itself back to the origin of the previous rally. A reversal could now be observed very soon.
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Dot found a support at $40 and formed a bullish hammer. This suggests that a bullish rally could be seen very soon.
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If Dot is able to turn again from here, a new all-time high could soon be reached. However, investors should be careful with the offer zone at $ 46.
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Dot also broke through the 50-day moving average. Accordingly, the correction could be over, as it was corrected to the fib level of 0.618. Soon an Upwärts movement should be seen.
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The RSI also reached a bottom on Wednesday and has already turned around at the same levels several times in the past.
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Investors can look for entries above the $41.5 level. Targets can be set at $46, $54, and even at a new all-time high.
Should you buy the dip at Polkadot on Wednesday? appeared first on Coin Hero.