Polkadot rebound at a crossroads, leaving market operators bewildered and frustrated as other altcoins sprint towards new highs. In the short term, the support pattern presents the potential for a 20% rally from the current price if resistance support levels are overpowered.
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Polkadot began 2021 with an impressive rally, but from mid-February, the cryptocurrency has primarily moved sideways, except for a minor new price high in the middle of April. The new high was matched with a bearish momentum divergence, as the Relative Strength Index on various timeframes failed to print a new high level. The ensuing correction traveled to the 50% retracement support of the advance that began on December 23, 2020, resulting in a 40% price decline.
From a macro perspective, a potential head-and-shoulders pattern top is lurking on the 12-hour chart. To complete the support pattern and to provide symmetry, Polkadot price needs to shrug off the resistance at the crossroads of the double top trigger at a price of $37.71 and the 100 twelve-hour simple moving average at a price of $36.93 to reach a similar high as the left shoulder around the price of $42.36. It would equate to a 20% price gain from the current price.
To further add symmetry triangle, the right shoulder could take weeks to complete, as was the case with the left shoulder, bolstering the credibility of the pattern level that ranks very high in terms of success and returns if adequately formed
The bearish thesis is voided if Polkadot price rallies beyond the April high at $48.54. A surge beyond the high will collide with the meridian trend line support beginning at the end of December 2020 and through the March low. The trend line currently rests at a price of $58.25.
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