Why Polkadot Price may have started the move down to $3
|- Polkadot price has breached a descending triangle to the downside.
- There is a subtle uptick in transactions amidst the decline,
- Invalidation of the bearish thesis is a breach above $7.80.
Polkadot price may be headed for a sharp decline. Key levels have been identified.
Polkadot price headed south.
Polkadot price could witness a sharp decline during October. Since The beginning of September, DOT's price has lost 20% of its market value. The steep decline could be the start of a 50% decline.
Polkadot price currently auctions at $6.26. The bears have forged a close into oversold territory on the Relative Strength Index. The bulls have lost support from the 21-day simple and 8-day exponential moving averages. Lastly, there is an uptick within the decline compared to the previous decline and congestion zone.
DOT USDT 1-Day Chart
Combining these factors, DOT price may have completed the triangle pattern. A breach of the previous swing low at $6.00 is the final confirmation necessary. If the technicals are correct, the triangle could prompt a 50% rally to the downside targeting $3.00. Invalidation of the bearish thesis is a breach above the previous upswing at $7.80.
In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market. -FXStreet Team
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