DOT DOUBLED - now coiling tight, ready for action again

Polkadot (DOT) is the so-called 'Ethereum Killer' invented by Ethereum's brilliant former CTO. Since listing on Binance, the price has soared. It is now consolidating in a tight symmetrical triangle. This situation has a BULLISH bias.

BUT remember symmetrical triangles are not reliable breakout patterns. They have a tendency to morph into new, larger patterns, rather than breaking out cleanly and rocketing upwards. Sometimes they do rocket, but often they break downwards too.

So why do we even bother drawing them? Because they allow us to define clean resistance and support lines, as shown on my image. This helps us avoid entering a trade too early and getting chopped up by sideways ranging movement. If you buy a breakout upwards from this pattern, look for a quick move above the previous high price ($6.80 in this case). If that doesn't happen, then beware, the pattern may be morphing into a new, longer sideways ranging pattern.