Polkadot Price Prediction: DOT hints at a 12% drop as two indicators flash a “sell” sign


  • Polkadot price is getting squeezed between two converging trendlines indicating consolidation in play.
  • Considering the previous price trend, DOT is in a bullish pennant formation, suggesting a 64% upswing.
  • However, the sell signal flashed by two technical indicators hints that the bullish breakout might have to wait.

Polkadot price entered a consolidation phase after hitting a local top of $42.39 on February 20. Now, DOT faces a confluence of sell signal from two accurate indicators, which reveal the possibility of an incoming drop.

Polkadot price prepares for a downswing

Polkadot price saw a 180% upswing starting from January 27, soon after, the bullish momentum exhausted, resulting in consolidation. DOT followed this phase by getting squeezed between two trendlines forming lower highs and higher lows, which created a pennant.

Considering the price action since January 27, Polkadot seems to be in a continuation pattern known as “bullish pennant.” This technical formation suggests that a breakout will result in a continuation of the previous price trend. The target is determined by adding the flag pole’s height to the breakout point at $37.8, which puts DOT at $62.27.

Although the pattern is inherently bullish, the SuperTrend indicator’s sell signal has coincided with the Tom DeMark (TD) Sequential indicator’s sell signal presented in the form of a green nine candlestick on the 12-hour chart. The latter indicator’s signal forecasts a one-to-four candlestick correction. Hence, Polkadot price can be expected to slide 12% to hit its short-term target of $31.85 or the 61.8% Fibonacci retracement level.

DOT/USDT 12-hour chart

DOT/USDT 12-hour chart

Although a 12-hour candlestick close above $37.8 would signal a breakout of the bullish pennant formation, only a close above $40 will signal a higher high. In such a case, Polkadot price can be expected to surge 55% to hit $62.72.


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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP