Polkadot is currently working to create a bullish breakout of a newly formed technical pattern. After encountering strong seller congestion at $6.50, the parachain token took a break at $6.30. To cement the bulls' presence on the market, it will take four hours to close at $6.30 or higher.
Polkadot has not stopped its development activities. This is especially true now that its founder, anasynchronousrob, has published a new roadmap for the fourth quarter 2022. The plan covers a variety of topics, including parachain scalability and parachain development. It also includes cross-chain communication, relay-chain governance. Cross-chain communication. Direct bridges to other ecosystems. Common-good parachains.
The project prioritizes scaling. According to asynchronous Rob, Parity and Web3 Foundation are protocol designers. Their goal is to provide parachains with an increase in block capacity. They are working round the clock to make sure that Asynchronous Backing can be deployed on Kusama (Polkadot) by 2022.
The Polkadot market is looking for a break from the short-term falling wedge pattern. The support provided by the 50-day SMA (four-hour chart) has allowed buyers to focus less on sudden pullbacks and instead, regaining ground to $6.50 or even $8.00
After a significant price decline followed by consolidation, a falling wedge pattern is formed. Two trend lines link a series lower highs and lower bottoms. As the DOT price falls further into the apex, a breakout is usually expected.
Trader must confirm a breakout above and below the trend line in order to make the most of the wedge pattern without falling for bull traps. Potential take-profit targets for the upside are $6.50 or $8.00.
The Stochastic oscillator, however, on the same chart shows that the Polkadot market is becoming almost overbought. Short-term trades could favor sellers which could discourage buyers trying to push DOT higher up the ladder. If there is a trend correction the support areas that are most likely to be tested include $6.20, and $6.12.
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