Jonathan Morgan
Independent Analyst
- Polkadot price fails to hit $40, drops below $30 value area.
- Bears prepare for the next short attack down to the $19 level.
- Oscillator levels indicate sell-off has yet to begin.
Polkadot price has dropped as much as -21.5% during Monday’s trading session, wiping out nearly twelve weeks’ worth of gains. Further downside expected.
Polkadot price panics bulls, bears prepare to push Polkadot down by -44%
Polkadot price is under threat of severe retracement over the next couple of weeks. From today’s open at $33.86, bears have taken over and quickly annihilated any short-term bulls out of their positions to push Polkadot out of the $30 range and back into the $20 range.
Polkadot price is under considerable threat below $27. The ultimate target for bears is a confluence zone around the $19 value area. The 38.2% Fibonacci retracement from the June 20th low to the high of the weekly strong bar on May 21st is $18.88. The 81.8% Fibonacci retracement from the most recent significant swing high on September 14th to the low of the strong bar on July 22nd is $19.09.
Bulls may find some support for Polkadot price between the high volume node at $23.30 and the 50% Fibonacci retracement at 21.85. However, the oscillator values do not currently support a substantial area of support.
The Composite Index has yet to reach a historical low or support level. The Relative Strength Index is just leaving overbought conditions and has a significant amount of space to travel before testing oversold conditions. Finally, the Optex Bands have yet to reach an extremely oversold level. All of the oscillator conditions support Polkadot price moving further south towards the $19 value area.
Bears need to be cautious, however. The Lagging Span remains above the candlesticks, and while that condition remains true, Polkadot price still has a bullish slant. As a result, bulls will need to close Polkadot above the Tenkan-Sen at $33.96 to invalidate any current bearish sentiment.
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