- Polkadot price has been rejected from two moving averages,
- DOT shows an influx of volume transactions as the price descends.
- Invalidation of bearish outlook thesis is a breach above $8.00
Polkadot price seems on its way toward newfound lows. Key levels have been defined.
Polkadot price shows bearish stregnth
Polkadot price continues to show reasons to believe that a sweep-the-lows event is underway. DOT, The cutting-edge smart contract and gaming token, experienced a 24% decrease last month after breaching an ascending trend line. The trend line supported the summer as prices fluctuated back and forth in a triangular fashion. An influx of volume was spotted during the most recent sell-off, which looks like a continuation pattern compared to previous sell-offs.
Polkadot price currently auctions at $6.30 as the bulls have been rejected from both the 8-day exponential and 21-day simple moving averages. The Relative Strength Index is back above support on larger timeframes showing the current sell-off may be short-lived. A pullback near $7.00 is plausible in the days to come.
Still, the triangular breach could result in a serious sell-off in the grand scheme. If the technicals are correct, a liquidation towards the $3.50 level could occur sometime in 2023. Such a decline would result in a 40% decrease from the current market value.
DOT USDT 12-Hour Chart
Invalidation of the bearish thesis is a breach of the September 12 $8,00 swing high. If the breach occurs, an additional uptrend rally targeting $10 could occur, resulting in an 85% increase from the current Polkadot price.
In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market. -FXStreet Team
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.