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Polkadot price signals “weak hands holding” as bears aim for $4

  • DOT price is on a steep decline.
  • Polkadot price has breached buyers' territory on the Relative Strength Index.
  • Invalidation of the bearish trend is a breach at $14.25.

Polkadot price looks weaker than most digital assets. Before opening a position, traders should consider giving the digital asset more time to consolidate or invalidate the downtrend.

Polkadot price is due for more decline.

Polkadot price signals weak hands in the market as the bulls are failing to establish price action above the bearish engulfing candle that suppressed the DOT price into the current $10 zone. From a technical point of view, DOT price displays nothing worth considering as a serious argument for a countertrend tally. In fact, the slope of the current decline resonates with wave three price action. Secondly, the Relative Strength Index has a newly breached buyers zone on the 4-day chart,

Polkadot price failure to hint at a countertrend rally like other cryptocurrencies in the space warrants the idea of bullish exhaustion. At best, one can expect diminishing returns for the Polkadot price and, at worst, a $4 low to wipe out long-term buyers' interest in the market. The ramping pattern on the volume indicator adds further confluence to the bearish thesis.

tm/dot/5/18/22

DOT/USDT 4-Day Chart

Invalidation of the bearish thesis lies at $14.25. If the bulls breach this level, a $22 target for the DOT price could be in the cards, resulting in a 125% increase from the current Polkadot price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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