Polkadot $DOT Price Prediction and Technical Analysis 2021 | Should I buy Polkadot Now?
In this YouTube video, The Art Of Crypto delivers a detailed technical analysis of Polkadot (DOT) and outlines a multi‑layered trading strategy. The presenter begins by noting that DOT has broken below its 200‑day exponential moving average (EMA), turning that EMA into a potential resistance level around $24.5, but argues that momentum indicators (Market Cipher) show bullish divergence, suggesting an upcoming upside shift. He examines the 4‑hour chart, identifying an imperfect inverse head‑and‑shoulders pattern that could break upward toward the 200‑EMA on that timeframe (~$32‑$33). On the 1‑hour chart, DOT has crossed above the 100‑period EMA and is approaching a potential top on Market Cipher. The host proposes three primary entry tactics: (1) pull‑back entries near $22.6‑$22.3 (aligned with several EMAs), (2) a breakout entry around $24.3‑$24.5 (the neckline of the inverse head‑and‑shoulders), and (3) a breakout‑and‑retest entry near the 200‑EMA on the 1‑hour chart. He also outlines deeper dollar‑cost‑averaging (DCA) levels at $20, $18.2, $15, and a bottom range of $10‑$9.3, supported by volume‑profile analysis. Risk management is emphasized through specific stop‑loss placement (e.g., 1 ATR below swing lows, or just under key EMAs) and position sizing recommendations (e.g., allocating $100‑$400 of a $1,000 capital across the various levels). The presenter expresses strong bullish conviction, citing upcoming parachain launches and ecosystem growth, and maintains a long‑term price target of $150. Throughout, he repeatedly promotes his private Discord community (Spots Unlimited) for more precise trade alerts and education, urging viewers to join.
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Welcome back to The Art Of Crypto, the birthplace of absolutely legendary gains. In this video, let us do an update on Polkadot because I know a lot of you have been really bullish on Polkadot after the last video that I made. So I haven't had time to do many updates on Polkadot on YouTube because I was busy with the private Discord group where we have been absolutely killing it. We have pretty much doubled our money multiple times during the last few dips. So if you haven't already joined Spots Unlimited, The link is in the description. You are going to want to be a part of this group. So let's get back into DOT. So right off the bat, on the daily chart, it is not looking pretty at the moment, right? Just temporarily, it is not looking pretty. Here's why. If you take a look at this purple line right here, this is a 200-day exponential moving average. And if you are a longtime follower of this channel, you know that I always say that the 200 EMA is always a very strong Dynamic support and resistance in any trend, and at the moment, since we have broke below it, it should theoretically act as resistance. As you can see here, we got rejected yesterday off of this 24.5 level. But right now, it does seem like Polkadot is ready to break through, and we might be going up. But for now, this is a key level right here at the 24.5 level to pay attention to. But I wouldn't be very concerned, all right? Because if I just bring your attention to Market Cipher, you can see that we have already formed an anchor wave. In fact, if you want to look at it this way, you might even say that this is bullish divergence, right? Because back in this previous low, you can see that the price was coming down, but on Market Cipher, the momentum did not come lower, which means this could be bullish divergence or exaggerated bullish divergence. So either way, I do not think that Polkadot is bearish. In fact, I am still hyper bullish on Polkadot, and I own a lot of Polkadot myself. I believe that with the upcoming parachain launches, Polkadot along with KSM and the other Polkadot ecosystem coins are going to absolutely blow up. So I'm huge on Polkadot. So if you are not in on Polkadot yet, I'm going to give you exact entries on where is the best places to enter Polkadot. So if you want to find out, you have to watch this video to the end. So right off the bat, now that we have established that momentum is potentially shifting up and that the $24.5 level is a key level to pay attention to, Let us go down to a lower time frame so that we can get a better picture of what is going to happen next. And at the moment, right off the bat, what I see is sort of an inverse head and shoulders almost, right? It's not the prettiest, but the theory still lies. So inverse head and shoulders usually break to the upside, and the breakout target for Polkadot may in fact be up to the 200 EMA on the 4-hourly chart, which again 200 EMAs are strong support and resistances, so it'll break out right to about that level at about $32. But I'm not saying that's going to happen like instantly. You have to dive a little bit deeper into this. So this isn't the most beautiful pattern, but what I can bring your attention to on Market Cipher is you can see that we have already formed multiple anchor waves and multiple trigger waves with bullish divergence, I might add. And bullish divergence is simply when price is coming down but momentum is shifting up. At the moment, it is still too early to tell whether we have formed a top on Market Cipher or not. But what I can tell you is that there are 2 possible scenarios that can come out of Market Cipher on the 4-hourly. And the first of which is it will just come up like this beautifully, break through this level, break through the 50 EMA, come down to retest it, right, before ultimately moving higher. So the price will reflect something like this, something like that. So that is scenario number 1. That is the ideal scenario for most of us. We are grand strategists over here at this channel. We do not want to be overly biased towards one direction, so I'm going to give you another scenario as well. Because if you take a look at Market Cipher right now, you can see that the money flow is seemingly curving into the red, which is not very pretty, right? It's not a very pretty sign. So in order to get a clearer picture of what is going to happen next, we have to go to the 1-hourly chart for Polkadot and Right now, I see beautiful, beautiful stuff. So we have managed to break above the 100-period exponential moving average, which is again a fairly strong support and resistance as well. So right now we have managed to break above it, but it does appear that we are close to forming a top on Market Cipher on the 1-hourly. So here is how I would try to trade Polkadot. I would wait for a pullback to either the 50-period exponential moving average on the 1-hourly, because if you zoom out to the 4-hourly chart, you can see that This level right here is a 21-period exponential moving average, which will act as some form of support for Polkadot if it does come down. So at about the 22.3 level, this would be a pretty decent level to buy at because you can set your stop loss just right at like 1 ATR underneath this swing low or 1 ATR under this swing low. Personally, if you are less risk-averse, I would place my stop loss somewhere around here because this is a very, very safe stop loss. The chances of you getting wicked out are close to none. But if you were a smart trader, I would say around this level would be brilliant. Or if you want to play it even safer, just right underneath all these major moving averages on the 1-hourly will be sufficient. Because if the price does break below the moving averages, you know that your theory about the price of Polkadot finding support on the major moving averages has failed. So just get out of the trade with a small loss. It's okay to be wrong. In fact, traders are wrong very often. The important thing is to not let your mistakes blow up your account. So this is where I would personally set my stop loss at the $21 level if I were to buy the $22.30 level, or perhaps even the $22.60 level. What I am hoping for the price to do is to come down for a retest at either this level or this level before moving higher, maybe consolidating a little bit around here, and then breaking higher, and then getting rejected off of the 200-period moving average And then consolidating a bit before moving higher. So that would be the ideal scenario for Polkadot. Am I saying that is guaranteed to happen? No, absolutely not. So let's continue diving deeper into this. So for now, my entry number 1 is to buy a pullback to the $22.6 level or the $22.3 level where there are major moving averages located there. The second entry I would buy is a breakout of this inverse head and shoulders pattern. Now it's not like, it's not the most beautiful. I'm just gonna put it out there. This is not the most beautiful inverse head and shoulders that I've seen, but it is still valid nonetheless. And right now the neckline of this head and shoulders appears to be at around the $24 level. So I would 100% buy the breakout of this inverse head and shoulders at about the $24.3, $24.5 level. And I would look for $32 to be the target of this breakout. The measured move out of the breakout of this neckline would actually bring us close to about $33, which lines up with previous support, right? So I always like to say previous support becomes future resistance, right? Now that the price has broken below support, you expect these to be resistances, right? All of these levels right here. So if you just want to get a clearer picture of Polkadot, I want you to just pause the video here and mark down all of these levels because these will be future resistances. for Polkadot to break through if we wanna complete our moon mission to about $150 Polkadot, which my price target still stands, by the way. I highly believe in the potential of Polkadot, and I believe it will be absolutely huge during this bull run, which is why I own a lot of it, by the way. So that is the measured move of this breakout target. So what is a breakout? Simply means you are breaking out of the pattern, right? So you buy with the breakout. Usually this is quite a safe thing to do because you can just place your stop loss Right beneath this resistance right here. And if the price does come back down and falls below, then you know your trade has been invalidated. And again, it is okay to take a small loss than to be stuck holding bags all the way down if it does fall below. So that is entry number 2, other than the pullback, remember, right? Entry number 1 is this pullback right here. Entry number 2 is the breakout of this resistance line right here, which is also the neckline for this inverse head and shoulders. So Entry number three would be a breakout of this neckline right here, whereby we get rejected off of the 200-period exponential moving average on the one hourly. Yeah, on the one hourly, and then we come back down to retest this resistance. And if we get a successful retest where the price finds support at this level right here, this would be my ideal entry. Right? This would be a brilliant entry because what happens then is what we call a support and resistance flip. And as the name implies, a support and resistance flip is when you flip. Resistance into becoming support, right? If we break above the resistance and then we find support, then we would have had a successful flip. So this would be ideal entry because this is where the strongest group of buyers are going to be at. So if I were to buy at this level right here, I would just set my stop loss probably just right here at 22.8, or maybe a little bit higher if you want to be a bit more risk-averse, which is not a bad thing. So that is entry number 3. And if we do get this retest, I expect Polkadot to just do something like, something like this, right? Basically, Polkadot's gonna be bullish and Polkadot is just gonna go up. So that is entry number 3. So over here, I like to say that we are grand strategists, so we do not want to be overly biased towards one direction. It does seem like Polkadot might be going up. I just wanna give you a few limit entries in case Polkadot does fall back down. Below all the major moving averages. That way you can have good levels to accumulate Polkadot at. And the first level would actually be the $20 level, right? $20 to $20, like around here, $20.3 to about $19.8. All of these levels work. I would personally go with $20.4 though. I would rather get myself an entry than, you know, to put a very beautiful conservative number and not get an entry at all. The second level would be at about $18.2. The third level. And if we just zoom out to find previous supports and resistances, we can see that this $15 level is in fact very strong support for Polkadot, right, potentially. And if we want to further validate this theory, I will just bring up the VPVR indicator. And you can see that in fact we might not even get to $15 because look at the amount of volume at around the $18 to $16 and potentially the $15 level, right? This means that there is going to be a lot of support at around this level. And if we were to fall even lower, right, in the off chance that we fall even lower, I'm going to call the $10 to about the $9.30 level as the bottoms for Polkadot, right? If you can imagine getting your Polkadot at $10 or $9, right? I always say this, we are better than this, guys. We are grand strategists. We buy when other people are fearful and we sell when other people are getting greedy. Right here, right here, when Polkadot fell to about $15, that was when Everybody was scared out of their minds. To all of you guys asking me if you should buy Polkadot now, like where the heck were you when Polkadot was at $15 or like $13? Where were you? That was the time to buy, not now. Now you buy the pullbacks. But guys, come on man, it's a bull run. Don't let the media affect you from your game plan. In a bull run, we buy the dips because it is safe to do so. So if you get another dip next time, don't be stuck. Don't be asking whether or not you should buy or not. Yes, you should. You absolutely should. Because imagine if you would've bought all the way down here, you'd be up about like, what, 60, 70% right now? That's a good place to be for anyone that I know, right? And if you were in the private Discord group, you would've bought down here, right? Nobody in the private Discord group panic sold at all. All of us bought the dips. And if you want exact entries and exits, I want you to join the private Discord group, right? We have a world-class education in there and an amazing community. It is not something that you are going to want to miss out on. Spots are limited, so get in while you can. So just to do a little recap, these are the levels that I would look to get Polkadot at. And if you were wondering how should you buy, I would do something like this, right? Imagine if you had $1,000 to play with. I would do like maybe $100 at the $20.2 level, and then maybe another $100 at $18, $200 at $16 or $17, $400 here, and the rest down here. So this is what you call dollar cost averaging. You do not ever enter with one lump sum because the lower it gets, you can average out your position, right? That's what we did during the dips. By buying the dips all the way down, we averaged out our position to about like, what, $17, $18? And now we are in massive, massive profits. That is how you survive as a trader, right? You never go in with one lump sum and you never exit with one lump sum. So same goes for taking profits. Maybe I would take 25% here, 25% here, 25% here. Maybe, maybe the rest up here, right? It's always about averaging it out. You do not enter and exit in one lump sum. So again, here's another recap. I would buy a pullback to the 22.6, 22.3 level. That would be entry number one. The second entry would be to buy the breakout of this inverse head and shoulders, and then we just ride it from then on. All right, remember to use stop losses, guys. It's not trading if you don't use a stop loss. Yeah, if you don't use a stop loss, it's called hodling or investing. Breakout of the inverse head and shoulders, and a third entry would be a breakout and retest of the neckline of this inverse head and shoulders at about the 24.5, 24.1-ish level. It's not exact, right? It's not an exact science. It's kind of subjective, actually. So that's entry number three, and entry number four would be the dollar cost average down on Polkadot at all of these levels right here. Because if you truly, truly believe in Polkadot, you have to buy the dips. Takes a dump, everyone panics and they panic sell. It always puzzles me because if you are in crypto, it means that you believe in the technology, right? But do you really believe in the technology and the potential of crypto as an asset class in the future? The moment you see a dip, you just panic sell. Like, it really strikes me as strange with such massive discounts you would sell instead of buying more. So guys, seriously, the next time the market gets into a really, really fearful state, you need to be buying the dips, man. Like, seriously. We are better than this, right? People in this channel, we better than this. We don't get scared like everybody else. We think unlike the 99% of other people, right? That's how you succeed in trading. You can't win in trading if you are like everybody else. If you do what everybody else is doing, right? If you do what everybody else is doing, you're gonna get results like them. And I'm pretty sure most people aren't profitable in trading. So with that said, link is in the description. I want you to join the private Discord group if you want a world-class education with exact entries and exits. And with that said, my friend, may the gains be with you. I'll see See you in the Discord group, and peace.
