Why Polkadot Price may have started the move down to $3
- Polkadot price has breached a descending triangle to the downside.
- There is a subtle uptick in transactions amidst the decline,
- Invalidation of the bearish thesis is a breach above $7.80.
Polkadot price may be headed for a sharp decline. Key levels have been identified.
Polkadot price headed south.
Polkadot price could witness a sharp decline during October. Since The beginning of September, DOT's price has lost 20% of its market value. The steep decline could be the start of a 50% decline.
Polkadot price currently auctions at $6.26. The bears have forged a close into oversold territory on the Relative Strength Index. The bulls have lost support from the 21-day simple and 8-day exponential moving averages. Lastly, there is an uptick within the decline compared to the previous decline and congestion zone.
DOT USDT 1-Day Chart
Combining these factors, DOT price may have completed the triangle pattern. A breach of the previous swing low at $6.00 is the final confirmation necessary. If the technicals are correct, the triangle could prompt a 50% rally to the downside targeting $3.00. Invalidation of the bearish thesis is a breach above the previous upswing at $7.80.
In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
