Foreign [Music] One of the weaker charts at the moment And updating it very often because it is Really indeed quite weak Um it is currently moving in this sort Of descending channel here We could argue that maybe maybe a bear Market low has been made here Um on the 21st of November but the Bullish case for that is very weak and I Primarily still see this wave 5 to Continue further to the downside we are At the moment in a situation where we Can see some more short-term upside Potential around Bitcoin and ethereum Therefore this could be very well the Case for DOT as well however the signals We get they are just very weak yeah I Mean we've got here Bit of an upward sloping Channel that's Typical for a possible diagonal pattern Because I showed you in I think the Previous video actually that indeed you Know this could become an Impulse I mean We had five waves up here we had three Waves down here Um it's by the way a very similar Shorter movement like cardano at the Moment Um this was starting to look interesting As well yeah but we retraced too much so I'm not convinced that this is an Impulse anymore however we can count it
As a diagonal pattern Um and this is sort of the the most Bullish card I can give you here with This one and it is not very bullish yeah I mean diagonal pattern is possible here As a five wave move to the upside a So-called leading diagonal these can Start uptrends okay but let's be honest How many diagonals have I shown you and How often have they worked out they Often don't and that's why I mentioned Often we have here a a um a very Unreliable pattern if we want to count This bullish if we want to investigate That a bear Market law has been made We can go with a diagonal option but Then certain conditions need to be Fulfilled yeah Um so this is a possible bullish account That Howard would ideally play out this Would then be a higher degree Wave 1 Which finished at 574 and we would be Coming down here in three waves ideally It should stop here now yeah I ideally Then we've got an ABC down at 523 It could still come down a bit lower So it's now come down to the 61.8 Retracement the next support would be Here the 78.6 retracement at 5.13 but at the latest from here it Should move up if it is going to Rally Here to have a pause to have a let's say Likely chance to actually rally in a Wave three it should move up either now
Which it probably won't with that strong Retracement again or from here at 5 13. Um target for the third wave Would then be let's say we come down to That 513 level Target would be 635 that Is what polka dot or dot would need to Reach at least to convince me that we Are in something rather bullish So the potential is there we are pulling Back into support whenever we pull back Into a support area it's of course a Possible long trade opportunity but bear In mind the probability here of it Working out in this chart is rather low But yeah it's a possible Wave 2 option And Below 513 is probably not going to Work out and then we will most likely Make a new low so that's how how it is Yeah These charts with those diagonal Patterns they often just don't work out They often just don't work out and Especially what has moved up here since The 21st of November to the upside it Has just been very weak yeah so it could Very well just all of this could just be A five wave move down again maybe the First one of the fifth wave that would Be quite bearish to be honest Um or maybe a one two one two setup We'll see but it it all depends on are We gonna hold 5.13 or not so that's what It comes down to Um yeah that's my update about polka dot
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