• Polkadot price is on pace to close with the worst daily decline since September 21, 2020.
  • DOT testing 0.382 Fibonacci retracement level at $27.45.
  • Daily volume may close above average for the first time since February 28.

Polkadot price is breaking down from a sideways channel on explosive volume. If DOT closes at or near the lows, it will be the worst daily decline since September 21, 2020. It is currently on pace for the 2nd worst weekly loss since trading began in August 2020. This is an abrupt change in the price character that has reigned for the better part of a month.

Polkadot price correction could just be beginning 

DOT quickly tested the 0.382 Fibonacci retracement level of the September 2020 crash at $27.45 before mildly rebounding. Today’s low is also just shy of the February low at $26.56, which would represent a decline of $30% from Monday’s high.

If buyers do not enter the market, look for DOT to collapse to the 0.50 retracement level at $22.89 in the coming days, followed by a test of the 100-day simple moving average (SMA) at $21.61.

DOT/USD daily chart

DOT/USD daily chart

To invalidate the emerging bearish outlook, DOT buyers will need to lift the price back into the sideways channel and above the 50-day SMA at $31.14 on a daily close.

A breakout above $40.00 will clear Polkadot price for a test of the all-time at $42.20.

Today’s price action reminds traders about the risks associated with speculating in the cryptocurrency markets and reinforces the value of keeping a big-picture perspective during high volatility events.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano news

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.

More Cryptocurrencies news

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast