• Polkadot price dips below the bear flag.
  • The risk of downside pressure remains, but dips continue to get bought.
  • Oscillators warn of a strong sell-off unless bulls close above $40

Polkadot price has formed a double-top with the highs formed near $38 precisely one month ago. It is now trending lower with significant selling pressure over the past three trading days – but buyers have stepped in to keep the bodies of the daily candlesticks above the Tenkan-Sen.

Polkadot price has significant support beneath it; bulls will be tested

Polkadot price is at an inflection point that will likely dictate the trend over the next thirty days. It has broken out below the bear flag and appears to be testing that initial break as resistance. If it holds, then bulls will need to hold the Tenkan-Sen at $33.66. Failing that, there is a triple support zone at $32.25 with the 78.6% Fibonacci retracement, Kijun-Sen and Senkou Span A.

Polkadot is better positioned than most altcoins to experience a new and sustained bullish breakout. The Relative Strength Index has flattened out considerably, and the Composite Index may curl higher to cross above its fast-moving average. The level that bulls need to target as a close for Polkadot price is just above the 88.6% Fibonacci retracement at $37.75.

DOT/USD Daily Ichimoku Chart

However, Polkadot could fall under increased selling pressure if the aggregate market starts to sell off. The $25 value area is likely the next primary support zone as it includes the 61.8% Fibonacci retracement, and it is the same level where the Chikou Span would find support against Senkou Span B.

Bulls and bears will want to monitor Polkadot price if it re-enters the bear flag. If that were to occur, it could generate a flash move higher. 

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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