- Polkadot has been rejected from $40 as overhead pressure mounts.
- The TD Sequential indicator flashed a sell signal in addition to the MACD flipping bearish.
- Support at the 50 SMA, highlighted at $35, could call for stability and recovery back to $40.
Polkadot had sustained the uptrend after the recent support at $32.25. Although the uptrend targeted new record highs, DOT failed to break above the hurdle at $40. A correction is ongoing amid rising selling pressure.
Polkadot on the verge of a massive breakdown
DOT is exchanging hands at $36.7 following the rejection from $40. The mission is to secure higher support. Meanwhile, the 50 Simple Moving Average (SMA) at $35 is the immediate support. If Polkadot slices through this zone, many sell orders will trigger, adding to the current selling pressure.
The 100 SMA currently holds the ground at $34.5 but does not seem robust enough to stop the losses. Therefore, closing the day under the 50 SMA may see the bearish leg extend to the primary support at the 200 SMA.
DOT/USD 4-hour chart
The TD Sequential indicator has recently presented a sell signal on the 4-hour chart. The signal manifested in a green nine candlestick. The sell signal implies that the uptrend is getting exhausted while bears are ready to take over control. Most of the sell signals flashed for Polkadot tend to be validated; thus, the breakdown may continue to dominate.
A comprehensive look at the same chart shows that the Moving Average Convergence Divergence has confirmed the bearish outlook. The MACD has stalled and is on the verge of a move back to the mean line. Besides, the MACD cross under the signal line hints at the correction lasting longer.
DOT/USD 4-hour chart
Looking at the other side of the fence
Two days ago, the SuperTrend indicator gave traders a signal to take a long position on DOT. This means that Polkadot may dwell in a generally up-trending market in the short-term. Similarly, holding above the 50 SMA could cut short the breakdown and lead to recovery above $40.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
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.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.