- Polkadot upswing from the support at $26 has hit a barrier at $38.
- The ongoing correction occurs in the wake of the TD Sequential sell signal on the 12-hour chart.
- The SuperTrend indicator recently presented a buy signal, likely to invalidate the downswing.
Polkadot is battling with rising overhead pressure following a rejection at $38. Before the recent upswing, the token had dropped significantly from the all-time high of $42. Support established at $26 allowed bulls the opportunity to push DOT above $30. Meanwhile, massive declines are likely to come into the picture unless higher support is embraced.
Polkadot bows under rising overhead pressure
The TD Sequential indicator has recently flashed a sell signal in the form of a green nine candlestick on the 12-hour chart. The call to sell identifies positions where the bullish momentum is losing strength. This implies that the bears are increasing their positions. As overhead pressure surges, a correction comes into play. If the sell signal is validated, Polkadot may fall in one to four 12-hour candlesticks.
DOT/USD 12-hour chart
Support must be secured, preferably at the 50 Simple Moving Average on the 12-hour chart. Otherwise, Polkadot could freefall back to the support at $26. If push comes to shove and the bearish leg stretches further, the 100 SMA will come in handy.
Looking at the other side of the picture
The 4-hour chart brings to light the long signal by the SuperTrend indicator. Traders are signified to buy when this technical pattern turns from red to green while moving below the asset’s price. As long as the SuperTrend indicator remains bullish, Polkadot’s downside will be protected.
DOT/USD-hour chart
It is worth mentioning that the moving Average Convergence Divergence (MACD) has a bullish impulse, thus validating the SuperTrend. However, the MACD has to stay above the midline to avoid crossing below the signal line for the bullish narrative to hold.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.