Polkadot Big Picture (May 2022)

Published in

Coinmonks

3 min readMay 22, 2022

I don’t know about you, but looking at Polkadot’s chart brings no joy to me.

In my last analysis back in February (https://medium.com/coinmonks/an-update-on-polkadot-big-picture-26-02-2022-e0f1ba7abf50), I stated that if the long-term trendline would be broken, the price would dump to the next support around 10,362 USD. For me, the long-term uptrend would then be invalid.

And exactly this happened. Let’s look at the current chart:

On the big picture, the current low undercuts the previous lower-low from March/April 2021. This is a huge sign of weakness, and the long-term bullish trend has become invalid.

Since the last ATH, Polkadot declined by nearly 87% (!). If we measure the distance from the SMA 200 (a good indicator for long-term trends), then Polkadot currently trades far away from this important moving average:

Polkadot trading far away from its SMA 200

As the chart says, the price would need to rise by roughly 130% before it is above the SMA 200 again.

Polkadot support and resistance levels

Those are the current support levels I can see:

8,09 USD (weak)
7,20 USD
3,73 USD

Resistance:

10,36 USD
13,09 USD
14,02 USD
16 USD

Outlook for Polkadot

At the moment I do not see any signs for a trend change. The chart patterns mostly look bearish.

But: The price stopped falling around 7,20 USD. This area was tested before (01/2021) and could serve as a key support. It is highly likely that Polkadot will test this level again. If this support holds for a couple of days, chances are high that a bottom will form.

Bonus: Fibo projection for correction targets

If you are into Fibo levels and projections, here is something for you:

According to the Fibo projection, an important correction mark has been reached already. This would fall together with my estimation that the level around 7,20 USD could be a key support. If this level breaks, though, the next big Fibo projection target would be at 0,84 USD.

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Polkadot Big Picture (May 2022)

Polkadot support and resistance levels

Outlook for Polkadot

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Written by Casual Klaus