fxs_header_sponsor_anchor

Polkadot bulls flee the scene as DOT price crumbles

  • Polkadot price broke below the 55-day SMA and the monthly pivot.
  • DOT price keeps trading lower as RSI shows no signs of any increase on the buy-side volume.
  • Expect a further leg lower and possible acceleration of the down move with a 20% depreciation.

Polkadot (DOT) is under pressure as bears have reversed the uptrend and are now looking to push DOT price lower. Bulls can defend support at $37, but if that breaks, another big chunk of devaluation could follow. Expect traders not to catch the falling knife and instead look for the current correction to unfold in full before stepping in and buying back into an extended position again.

Polkadot price bears chasing the 20% devaluation before bulls will look for entries

Polkadot price broke back below the $45.22 level a few days ago but did not stop to consolidate below it, and yesterday the correction extended a further 15% in just one day. The pain does not look over yet for DOT price as, whilst the monthly pivot could slow down the nosedive, there is still the possibility of another break below its support at $39.50. 

DOT price looks to be in a downtrend now with downside pressure increasing and the Relative Strength Index not showing an uptick on the buy-side. Expect a retest of $37.03, followed by a break and further acceleration of the sell-off. With that move, another 20% devaluation will hit DOT price and see bulls getting out of the way until the price reaches $31.61.

DOT/USD daily chart

Once DOT price trades between $31.61 and $29.12, bulls will start to build a fade-in trade with the $30 big figure as psychological support and incentive for bulls to go long. With that price correction, the RSI will be trading in an oversold area and will not attract more bears to the scene as the indicator will be signalling further downtrend profit will be limited. This should then see bulls gaining back some ground towards $37.03.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.