- Polkadot price could be headed lower as the governing technical pattern presents a cause for concern.
- DOT may be able to search for reliable support at $16.95 before dropping toward the downside trend line of the governing technical pattern.
- If selling pressure continues to increase, Polkadot could fall toward the pessimistic target at $13.17.
Polkadot price has formed a cautious outlook as the token continued to record lower highs and lower lows. DOT has presented a bearish target at $13.17, with validation if it fails to slice above the upper boundary of the governing technical pattern at $21.77.
Polkadot price locked in downtrend
Polkadot price has formed a descending parallel channel on the daily chart, raising concern for DOT buyers. The token has projected a 30% fall toward $13.17 if the key levels of support fail to hold.
The first line of defense for Polkadot price is at the 78.6% Fibonacci retracement level at $17.91. Additional selling pressure may see DOT test the support line given by the Momentum Reversal Indicator (MRI) at $16.95, coinciding with the middle boundary of the governing technical pattern.
Polkadot price may then test the January 24 low at $15.80 next if bearish sentiment continues to increase. Falling below this level could put the pessimistic target at $13.17 on the radar, where the lower boundary of the prevailing chart pattern is located, coinciding with the 127.2% Fibonacci extension level.
Investors should note that if the aforementioned pessimistic target is a level not seen since July 27.
DOT/USDT daily chart
However, if buying pressure increases, Polkadot price may aim to tag the 21-day Simple Moving Average (SMA) at $19.49, intersecting with the 61.8% Fibonacci retracement level.
An additional spike in buy orders may push DOT price higher toward the 38.2% Fibonacci retracement level at $21.77, coinciding with the upper boundary of the prevailing chart pattern.
If Polkadot price manages to break above the topside trend line of the governing technical pattern, the bearish outlook may be voided.
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
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
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.