Why a $4 Polkadot price has resurfaced on Wall Street's table


  • DOT price has breached the supportive zone on the RSI.
  • Polkadot price shows a solid bearish presence on the Volume Profile indicator.
  • Invalidation of the bearish thesis remains a breach above $10.

Polkadot's technicals are unfolding bearishly, hinting at strong high-cap influence.

Polkadot price looks severely bearish 

Polkadot price shows bearish technicals that long-term investors should be aware of. Since July 3, the self-proclaimed "Ethereum Killer" smart contract and gaming token impulsively rallied an impressive 60%. In August, the rally was capped at 9.74, just below the $10 in the maro invalidation zone. Because the bulls failed to tag the macro invalidation point, the unfolding 30% decline could be the beginning of a much larger impulse wave headed south in the days to come.

Polkadot price currently auctions at $6.98, just above the bearish engulfing candle established on Friday, June 26. The Volume Profile indicator is the most concerning confluence signal despite the 60% rally that occurred throughout the summer. The bulls have not shown retaliative comparison to the bearish rallies prior. Additionally, the Relative Strength Index (RSI) has breached the supportive buyers' zone on the most recent downswing,

tm/dot/8/27/22

DOT/USDT 1-Day Chart

Combined, the technicals could show evidence of a larger impulse wave headed south with midterm targets at $4. Invalidation of the bearish thesis is still possible but should only be considered if the bulls can breach $10. In doing so, a bull run could commence targeting $14 in the midterm resulting in a 100% increase from the current Polkadot price.  

In the following video, our analysts deep dive into the price action of Polkadot, analyzing key levels of interest in the market - FXStreet Team

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple (XRP) traders’ sentiment turned positive on Friday, as CEO Brad Garlinghouse highlighted the addition of XRP-Dollar reference rate and indices to the CME Group and CF Benchmarks. 

More Ripple News

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

OpenAI, the American tech firm behind the Large Language Model ChatGPT, announced five levels towards building an Artificial General Intelligence (AGI). Employees at the firm told Bloomberg that with ChatGPT, Open AI is currently at level one. 

More Worldcoin News

VeChain break above descending trendline sparks rally speculation

VeChain break above descending trendline sparks rally speculation

VeChain price breaks above the descending trendline, suggesting a bullish move. Sideline buyers can accumulate VET between $0.0247 and $0.0239. A daily candlestick close below $0.0204 would invalidate the bullish thesis.

More VeChain News

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. 

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. On-chain analytics indicate that whales are accumulating BTC during dips, potentially foreshadowing an imminent rally in the days ahead.

 

Read full analysis

BTC

ETH

XRP