Polkadot Price Forecast: DOT bulls must defend $22.6 to avoid a 9% drop
- Polkadot price is trading inside a right-angled broadening wedge on the verge of a breakdown.
- If bulls can hold a crucial support level at $22.6, DOT can quickly fall towards $20.5.
- Odds favor the bears as the entire cryptocurrency market is red in the past 24 hours.
Polkadot has been trading inside a right-angled broadening wedge on the 1-hour chart for the past 48 hours. The digital asset is on the verge of a breakdown towards $20.5 if the bulls can’t hold the key support level at $22.6.
Polkadot price at risk of falling 9% in the short-term
The most significant support level is $22.6 in the short-term as it is the lower trendline of the broadening wedge pattern on the 1-hour chart. This pattern is considered bearish and has a target equal to the height of the breakdown point to the top trendline.
DOT/USD 1-hour chart
Additionally, to add credence to the bearish outlook, on the 12-hour chart, Polkadot price and the RSI have established a bearish divergence. The price has printed higher highs while the RSI has established several lower highs, confirming the divergence which is the strongest possible.
DOT/USD 12-hour chart
Nonetheless, to invalidate the bearish outlook, bulls need to hold the $22.6 support level. A rebound from this point can push Polkadot price to $25 towards the top trendline of the broadening wedge pattern.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
