- Polkadot price has lost support from the 8- and 21-day simple moving averages.
- DOT price shows an uptick in bearish momentum on the volume profile indicator.
- Invalidation of the bearish thesis is a breach above $10.
Polkadot price shows the possibility of a decline targeting $4. Key levels have been identified.
Polkadot price points south
Polkadot price shows bearish technicals to start the first trading week of August. On Tuesday, September 6, the Polkadot price was rejected from both the 8- and 21-day simple moving averages. This could be viewed as early evidence of a much larger decline.
Polkadot price currently auctions at $6.90. An Elliott Wave forecast projects bearish targets between $4.50 and $3.00 if the bears genuinely control the trend. The Volume Profile Indicator confounds the bearish idea as an uptick of transactions has been spotted amidst the rejection from the moving averages.
Despite the bearish outlook, traders should still practice caution, as smart money fakeouts are always possible in the crypto space. Traders should also expect a potential liquidity hunt targeting $8.00 for a 22% increase from the current price. However, such a move would not invalidate the overall bearish thesis.
The safest invalidation is at $10.00. This creates a conventional 1-1 trade setup that could yield healthy returns in the coming weeks.
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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