Polkadot price likely to fall into $16
- Polkadot price failed to retest the breached trend line.
- DOT price candlesticks are in a steep decline.
- Invalidation for the bearish scenario will be a close above $19.45.
Polkadot price displays bearish strength as the price has fallen below a key trend line. The $18 DOT price retests the broken line and could see strong resistance.
Polkadot price looks lethal.
Polkadot price is looking unfavorable amongst professional traders as the digital asset has printed the largest bearish engulfing candle this month which closed below the key WXY trend line from March. The bulls' failure to support the key trend line spells for a disastrous situation for DOT investors. DOT price next targets are likely $16 and $14, but the digital asset could see some counter-trend chop before the fall occurs.
Polkadot price volume is increasing in bearish favor, which should concern investors. The digital assets' steep decline is signaling strong control of the trend from the bears. Traders should look for entries on smaller time frames to join the bears with an understanding that the drop may take more time to occur.
DOT/USDT 12-Hour Chart
The safest invalidation to use will be the swing low at $19.45. The bearish scenario will void if the bulls establish a closing candle above the invalidation level. Subsequently, the bulls could take the price back towards $20 and $22, resulting in a 20% increase from the current Polkadot price.
Author
FXStreet Team
FXStreet
