DOT/USD has produced a burst higher in the past three days that underscores the speculative nature of cryptocurrencies in full, and traders should take a look.
On the 1st of November, DOT/USD was trading at a rather solid price of 41.0000 and testing support. On the 13th of October, DOT/USD was trading near 35.0000 having also produced solid but choppy results, which are to be expected via cryptocurrencies and their ability to exhibit volatility. As of this morning DOT/USD is trading rather comfortably above the 50.0000 juncture and is actually closer to 51.3000 as of this writing with fast conditions prevailing.
Very early this morning DOT/USD challenged the 53.0000 level. Yesterday DOT/USD was able to penetrate the 50.0000 ratio which broke all-time value seen on the 15th of May. DOT/USD is correlating well with it major counterparts as it challenges exuberant record breaking prices and demonstrates strong price velocity.
DOT/USD is a speculative delight and will certainly attract market participants who dream of bigger things to come. The trend has been strong and resistance levels have been brushed away easily like dust on a book, DOT/USD has been able to sustain a strong bullish move. Traders need to be cautious; they need to keep their target prices tethered to reality.
Overly ambitious speculators who reach for the moon need to practice risk-taking tactics that give them layers of security. Importantly and as a warning, there are no sure things and DOT/USD cannot be guaranteed continue to maintain upwards momentum. In fact a reversal lower should be expected at some point.
Resistance levels have been punctured quickly as the price of DOT/USD has burst with exuberance. If the 52.000 mark is tested again in the short term it could add speculative fuel to the fire. DOT/USD has thrust higher with thunderous sound, and if the parade continues to march forward traders cannot be blamed for believing higher prices will be seen near term.
As always traders need to stay realistic, take profit and stop loss orders should be working at all time as traders’ wager. Speculators who have the desire to bet against the upwards trend of DOT/USD need to make sure they are looking for quick hitting trades and are not overly leveraged. While reversals lower from these all-time highs may be a natural part of the price cycle, under present conditions bounces higher look like they should be expected and feared by sellers.
Polkadot Short-Term Outlook
Current Resistance: 52.8000
Current Support: 50.2700
High Target: 54.7500
Low Target: 49.0300