Polkadot Price Analysis: DOT tumbles from $40 amid multiple sell signals


  • Polkadot has been rejected from $40 as overhead pressure mounts.
  • The TD Sequential indicator flashed a sell signal in addition to the MACD flipping bearish.
  • Support at the 50 SMA, highlighted at $35, could call for stability and recovery back to $40.

Polkadot had sustained the uptrend after the recent support at $32.25. Although the uptrend targeted new record highs, DOT failed to break above the hurdle at $40. A correction is ongoing amid rising selling pressure.

Polkadot on the verge of a massive breakdown

DOT is exchanging hands at $36.7 following the rejection from $40. The mission is to secure higher support. Meanwhile, the 50 Simple Moving Average (SMA) at $35 is the immediate support. If Polkadot slices through this zone, many sell orders will trigger, adding to the current selling pressure.

The 100 SMA currently holds the ground at $34.5 but does not seem robust enough to stop the losses. Therefore, closing the day under the 50 SMA may see the bearish leg extend to the primary support at the 200 SMA.

DOT/USD 4-hour chart

DOT/USD 4-hour chart

The TD Sequential indicator has recently presented a sell signal on the 4-hour chart. The signal manifested in a green nine candlestick. The sell signal implies that the uptrend is getting exhausted while bears are ready to take over control. Most of the sell signals flashed for Polkadot tend to be validated; thus, the breakdown may continue to dominate.

A comprehensive look at the same chart shows that the Moving Average Convergence Divergence has confirmed the bearish outlook. The MACD has stalled and is on the verge of a move back to the mean line. Besides, the MACD cross under the signal line hints at the correction lasting longer.

DOT/USD 4-hour chart

DOT/USD 4-hour chart

Looking at the other side of the fence

Two days ago, the SuperTrend indicator gave traders a signal to take a long position on DOT. This means that Polkadot may dwell in a generally up-trending market in the short-term. Similarly, holding above the 50 SMA could cut short the breakdown and lead to recovery above $40.


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.

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews

Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews

Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week. 

More Cryptocurrencies News

Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60

Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60

Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days. 

More Ripple News

Solana could cross $200 if these three conditions are met

Solana could cross $200 if these three conditions are met

Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.

More Solana News

ALT, WLD, ENA, ID set for $200 million token unlocks next week

ALT, WLD, ENA, ID set for $200 million token unlocks next week

The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP