Lorenzo Stroe
Independent Analyst
- Polkadot price is at risk of a major correction as a key indicator presented a sell signal.
- There isn’t a lot of support on the way down for DOT.
- Nonetheless, the digital asset still aims for higher highs in the long-term.
Polkadot has once again established a new all-time high at $31.06 this time. The digital asset has exploded by almost 600% since December 23, 2020, reaching a massive market capitalization of $27 billion, close to Tether, which is currently ranked 3rd.
Polkadot price will most likely see a correction before another leg up
On the daily chart, the TD Sequential indicator has just presented a sell signal right at the top. Polkadot price is poised for a healthy correction after a significant rally in the past two months.
DOT/USD daily chart
The nearest support level is around $24.5, which is the 127.2% Fibonacci level after Polkadot price topped out at the 161.8% point. DOT can slide as low as $20 if bears pick up enough momentum.
To invalidate the bearish outlook, DOT bulls will have to establish a daily candlestick close above the recent high at $31.06. The next potential price target for Polkadot is $36.5 which is the 200% Fib level on the way up.
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