Recently, a crypto investor from the YouTube channel Cheeky Crypto has taken to the platform to detail their decision to sell off portions of their Polkadot holdings.
This move, aimed at securing profits, leverages detailed market analysis and technical indicators for crypto investors. Here’s a closer look at the reasoning and methodology behind this strategic sell-off.
Exits Strategy and Price Prediction
The analyst starts with a clear directive on the importance of exiting positions thoughtfully. He advocated for a dollar-cost averaging out strategy, a method where investors sell portions of their holdings at different price points to lock in gains, rather than waiting for a single, speculative price peak like $100.
The analysis includes a look back at Polkadot’s performance during the 2021 bull market and the 2022 bear market, noting how these Fibonacci levels have historically acted as significant markers. The creator posits that future bullish cycles will likely respect these levels, making them ideal for setting sell orders.
Dollar-Cost Averaging Out The planned sell-off strategy includes:
- 10% at the 0.382 level ($26.40).
- 20% at 0.618 (in the mid-$60s).
- 30% at 0.786, which is seen as a major resistance level.
- Further sales at the 98% level and beyond, with a speculative “moonboy target” DOT price near $200, indicating a bullish scenario.
Double-Dipping Strategy
At lower Fibonacci levels, from 0.382 to 0.618, the analyst suggests a “double-dipping” strategy. This involves selling DOT, buying it back at a lower price during a dip, and then selling again at a higher price during the next rally. However, this approach is cautioned at higher price levels due to the increased risk of market downturns.
The strategy outlined is tailored for medium-term investors who aim to capitalize on a single market cycle. For long-term investors, with a horizon of 20-25 years, the advice leans towards holding through market volatility without the need for such intricate exit strategies.
