Polkadot price stuck in bearish pennant, looking for a break lower towards $31.61

Polkadot price is still under pressure as the downtrend enters its next cycle.
DOT price looks to be breaking down out of a pennant towards $37.03.
With the breakout, bears will penetrate $37.03 and open up more space to fall towards $31.61.

Polkadot (DOT) price is showing no signs yet of the downtrend being over anytime soon as bears build momentum for another bearish break of $37.03. DOT price has seen bulls backing off as the Relative Strength Index (RSI) dipped further towards the oversold region but gave no signs of a bullish counteractive move in sight. Expect bears to penetrate $37.03 and decline another 15% towards $31.61.

Polkadot price correction could hold another 15% of depreciation

Polkadot price has not had a good November thus far after hitting a new all-time high at $55 at the end of October and then losing around 20%. A bearish pennant price pattern is showing signs of breaking below $37.03 and starting another downleg. The 55-day Simple Moving Average, overhead, has added additional weight capping the downtrend.

DOT price will pierce below $37.03, and accelerate lower, fuelled by bulls cover¡ing to minimize losses. With no real technical support in the way, DOT price could see an accelerated move down towards $31.61, holding another 15% price correction for Polkadot. This would amount to a 35% total retracement of the uptrend that started this summer and ended when Polkadot price peaked in October.

DOT/USD daily chart

But that is as far as the correction should go, as bulls will be appealing to get in and defend DOT price with a wide range of support elements in just a 5$ price range. Around $31.61, there is not only the historical level but also the S1 monthly support level coming in. A few ticks below, there are at least three other historical support levels and the 200-day SMA, which makes this zone a perfect area for a fade-in trade for bulls before the price will be launched back up towards $37.03 and $45.22 once the global correction in cryptocurrencies has faded.

Share: Cryptos feed

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.