Polkadot: Assessing whether or not DOT is de facto on the threat of a 16% sell-off

Polkadot was in a fragile place on the charts. Its worth remained gridlocked between two essential Fibonacci ranges whereas the symptoms flashed blended alerts with respect to its mid-long time period trajectory. One on finish, sellers would look to focus on a detailed under the 50% Fibonacci stage which might expose DOT to a possible 16% sell-off. On the opposite, patrons would hope to regain command on the 38.2% Fibonacci stage and goal a break above $32.7. On the time of writing, DOT traded at $29.8, down by 8% over the past 24 hours.

Polkadot Each day Chart

Supply: DOT/USD, TradingView

A triple backside round $26 kick-started a 25% run up for DOT however its ascent was lower quick on the 23.6% Fibonacci stage . A each day shut under the 20-SMA (crimson) can allow a fourth retest of the 50% Fibonacci stage, from the place a breakdown would loom giant. In case sellers handle to slice by way of this sturdy protection, DOT can be uncovered to a different 16% decline in worth. Consumers can then look to reply throughout the Golden Fibonacci Retracement zone or goal a possible double backside setup at $21.8.

Alternatively, a right away response at $28.9 worth stage might enable bulls to generate sufficient momentum to deal with the $32.6 worth ceiling. A transfer above the rapid resistance might even culminate right into a run as much as $38.7.


Now the Relative Energy Index’s trajectory was a significant regarding issue. Primarily based on the RSI’s downtrend since late-August, DOT was dropping the vigor to proceed a run as much as file ranges. A transfer beneath 45 might transpire into additional losses within the coming weeks and sellers reign in. Conversely, the MACD and Superior Oscillator every eyed a transfer above their respective half-lines. These studying might entice some shopping for habits shifting ahead.


Though the MACD and Superior Oscillator eyed a comeback above their mid-lines, proof was nonetheless inconclusive to be able to again a bullish final result. As an alternative, bearish readings on the RSI carried extra weight particularly after displaying a transparent pattern over the previous month and a half. If the market does play out in favor of the sellers, DOT was weak to sell-off all the best way in direction of the $22-mark.

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