- Polkadot price inside a bearish rising wedge pattern.
- Three-box reversal would coincide with a trend line break.
- -27% drop in sight for DOT.
Polkadot price is currently trading inside one of the most bearish chart patterns in existence: the Rising Wedge. The rising wedge patterns signal extremes and overbought conditions and are progenitors of massive corrective moves or broader trend changes.
Polkadot price action warns of overdone moves, bulls could get trapped
Polkadot price is at an inflection point. The bulls remain in charge here, but the threat to the downside is substantial and could trap a good number of bulls. If Polkadot moves down to $36.50, that will initiate a new column of Os and a three-box reversal.
The three-box reversal coincides with a break of the lower trending line in the rising wedge. Utilizing the vertical profit target method in Point and Figure charting, the target zone for bears would be the $27.00 value area. The move could likely extend lower, but support against the dominant bull market trendline should be expected the closer Polkadot price gets to the $27.00 level.
DOT/USD $0.50/3-box reversal Point and Figure chart
Bears may have to wait a while, however. If Polkadot price moves up to $40.50, then it will enter into price discovery mode. In other words, Polkadot will probably visit its prior all-time highs and then push on to make new all-time highs. As bearish as the rising wedge pattern is, its ability to cause a substantial blow-off top move has a high probability, especially if an instrument is trading at - or near all-time highs.
In the event of a breakdown below the rising wedge, bears will want to monitor the break carefully and watch for a retest to confirm an honest move.
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
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
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.