- 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
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