Polkadot price still underwater as bears aim for $14.50
- DOT price is beneath the descending parallel channel median line.
- Polkadot price is forming a bearish flag.
- Invalidation of the downtrend is a breach at $20.
Polkadot price still looks unappealing as the price is currently coiling into a bearish flag. Traders should look for potential short entries or stay away entirely.
Polkadot price is still bearish
Polkadot price has printed its lowest candlestick this month at $16.40. Since the DOT price has been coiling upwards into a smaller parallel channel that looks like a bearish flag, the DOT price can continue the countertrend for several more days, so being an early seller is not advised. Traders should consider setting alerts at the breach and close below the trend channel to ensure being on the right side of the trade.
Polkadot price has bearish targets at $15 and $14.50. The bulls have yet to display any significant change to consider a stronger countertrend rally. The safest invalidation for the bear's thesis is a breach of the parallel channel's origin point, which is at $20. Intraday traders can consider placing a stop above the smaller parallel channel if and when the channel is breached and closed to the downside.
DOT/USDT 6-Hour Chart
The $20 invalidation level creates a 1.35 risk to reward ratio to the $14.50 target. If $14.50 gets breached, a pullback will eventually occur. After the pullback, analysts will look for an entry to join the bull run to target $24, resulting in a 20% increase from the current price.
Author
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.
