• 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

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


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