- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.