Polkadot price presents cautious outlook as DOT bears target $13 next

Polkadot price has formed a cautious outlook as the token continued to record lower highs and lower lows. DOT has presented a bearish target at $13.17, with validation if it fails to slice above the upper boundary of the governing technical pattern at $21.77.

Polkadot price locked in downtrend

Polkadot price has formed a descending parallel channel on the daily chart, raising concern for DOT buyers. The token has projected a 30% fall toward $13.17 if the key levels of support fail to hold.

The first line of defense for Polkadot price is at the 78.6% Fibonacci retracement level at $17.91. Additional selling pressure may see DOT test the support line given by the Momentum Reversal Indicator (MRI) at $16.95, coinciding with the middle boundary of the governing technical pattern.

Polkadot price may then test the January 24 low at $15.80 next if bearish sentiment continues to increase. Falling below this level could put the pessimistic target at $13.17 on the radar, where the lower boundary of the prevailing chart pattern is located, coinciding with the 127.2% Fibonacci extension level.

Investors should note that if the aforementioned pessimistic target is a level not seen since July 27.

DOT/USDT daily chart

However, if buying pressure increases, Polkadot price may aim to tag the 21-day Simple Moving Average (SMA) at $19.49, intersecting with the 61.8% Fibonacci retracement level. 

An additional spike in buy orders may push DOT price higher toward the 38.2% Fibonacci retracement level at $21.77, coinciding with the upper boundary of the prevailing chart pattern.

If Polkadot price manages to break above the topside trend line of the governing technical pattern, the bearish outlook may be voided.