Polkadot price due for detonation as the bears aim for $4.00
- Polkadot price shows bearish control on the Volume Profile Indicator.
- The coiling pattern could send the DOT price to $4.
- Invalidation of the bearish count is a close above $14.50.
Polkadot price has a $4 trajectory
Polkadot price is currently trading at $9.25 as the bears are suppressing the layer 2 cryptocurrency following yesterday's false breakout. The $9 level is nothing new to the digital token, as the price has been fluctuating within the zone for the entirety of May. If the technicals are correct, the zone's tight-range consolidation could resolve with an impulsive bear rally.
Polkadot price provides confluence to support this bearish idea using the volume profile indicator. The ramping pattern is still unarguably in favor of the bulls. The bearish pattern accompanied by the Relative Strength Index's failure to rise above the 40 level on the 2-day chart caters to the idea that investors foresee more decline for the Polkadot price.
DOT/USDT 2-Day Chart
Invalidation of the bearish thesis is a breach at $14.50. If the invalidation level is touched, the macro downtrend could be considered over. New all-time highs could occur for the DOT price to $50, resulting in over a 480% increase from the current Polkadot price.
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.
