• Polkadot price inside a bearish rising wedge pattern.
  • Three-box reversal would coincide with a trend line break.
  • -27% drop in sight for DOT.

Polkadot price is currently trading inside one of the most bearish chart patterns in existence: the Rising Wedge. The rising wedge patterns signal extremes and overbought conditions and are progenitors of massive corrective moves or broader trend changes. 

Polkadot price action warns of overdone moves, bulls could get trapped

Polkadot price is at an inflection point. The bulls remain in charge here, but the threat to the downside is substantial and could trap a good number of bulls. If Polkadot moves down to $36.50, that will initiate a new column of Os and a three-box reversal. 

The three-box reversal coincides with a break of the lower trending line in the rising wedge. Utilizing the vertical profit target method in Point and Figure charting, the target zone for bears would be the $27.00 value area. The move could likely extend lower, but support against the dominant bull market trendline should be expected the closer Polkadot price gets to the $27.00 level. 

DOT/USD $0.50/3-box reversal Point and Figure chart

Bears may have to wait a while, however. If Polkadot price moves up to $40.50, then it will enter into price discovery mode. In other words, Polkadot will probably visit its prior all-time highs and then push on to make new all-time highs. As bearish as the rising wedge pattern is, its ability to cause a substantial blow-off top move has a high probability, especially if an instrument is trading at - or near all-time highs. 

In the event of a breakdown below the rising wedge, bears will want to monitor the break carefully and watch for a retest to confirm an honest move.

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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets take off without clear goals

Bitcoin price suffered two fatal blows, one on September 7 and another from September 19 to September 21. These two downswings pushed the big crypto down to a critical support floor.

More Bitcoin News

DOGE price explodes following massive spike in Dogecoin and Shiba Inu holders

Dogecoin and Shiba Inu have increased in popularity over the past few weeks. The SHIB community continues to petition for the memecoin’s listing on Robinhood, the commission-free exchange. 

More Dogecoin News

XRP price to breakout by 25% to the upside

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple behaves as it trades above support.

More Ripple news

VeChain Price Forecast: VET bulls charge ahead for 25% gain

VeChain price (VET) witnessed a flash crash for the second time in September as Bitcoin and the cryptocurrency market at large tumbled on September 19 and September 20.

More VeChain 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