- DOT price has breached a consolidative trend channel.
- Polkadot price has Fibonacci targets at $11 and $8.
- Invalidation of the bearish downtrend would be a breach at $17.70.
Polkadot price is prepping for a shocking sell-off unexpected by long-term investors. Profit-taking is highly advised under the current market conditions.
Polkadot price shows troubling signs
Polkadot price has accomplished last week's bearish trade setup as the price has breached a parallel channel. The steep declining bear rally has suppressed the DOT price into the $15 zone. The DOT price is likely to consolidate and potentially make a new low before coming back to retest the breached trend channel. Traders should look to short the digital asset if the DOT price displays a classical break and retest price action.
Polkadot price has a Fibonacci projection target coinciding with further declines. Fib levels from swing the high at $24 to the retracement at $19.5 forecast a 1.618 and 2.618 target at $11 and $8. The DOT bears have printed the largish bearish engulfing within the current downtrend on May 1st on the 8-hour chart, thus setting the tone for the rest of May if market conditions consist.
DOT/USDT 8-Hour Chart
Invalidation of the bearish downtrend is a breach at $17.70. If the bulls can touch this level, they could have the power to reconquer the trend. Bullish targets would be $20 and $22, resulting in a 50% increase from the current price.
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