• Polkadot price failed to hold support in the $20 to $21 value area.
  • DOT is less than $1 away from triggering a massive sell-off signal within the Ichimoku Kinko Hyo system.
  • Hidden bullish divergence is the only condition that could prevent a massive sell-off.

Polkadot price has been hammered south since last Thursday. DOT has lost up to 21% in just five days, returning it precipitously close to three-month and 2022 lows.

Polkadot price is at a make-or-break moment, 40% drop incoming unless bullish momentum returns

Polkadot price is very close to experiencing conditions that could trigger a flash-crash. DOT is below all Ichimoku levels on the daily and weekly charts, warning of easy, swift, and violent moves south.

One condition remains on the daily Ichimoku chart before Polkadot price could see a flash-crash, and that is the Chikou Span in open space. In the Ichimoku system, the Chikou Span in open space is similar to a ‘price discovery mode’ condition. It is a condition where little to no support or resistance exists to stop price action from moving in a single direction.

Open space required the Chikou Span to be at a price level where it won’t intercept the bodies of any candlesticks, horizontally, over the next five to ten periods. Therefore, if Polkadot price has a daily close at or below $18, then that will place the Chikou Span in open space and put Polkadot at its weakest technical level since December 3, 2021.

DOT/USD Daily Ichimoku Kinko Hyo Chart

The only saving grace for Polkdaot price is the possibility of hidden bullish divergence playing out in the bull’s favor. However, with no structural Ichimoku support on the daily or weekly charts, it is unlikely that price would respond in a bullish manner.

If bulls want to stave off a sell-off of Polkadot price, they will ultimately need to close Polkadot price above the Tenkan-Sen, Kijun-Sen, and 38.2% Fibonacci retracement at $22 or above. In that scenario, any further near-term bearish outlook would probably be invalidated.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP