Polkadot Price Prediction: DOT Poised for 35% Slide as Cryptos Bleed Again
- Polkadot fails to gain momentum following an ascending triangle breakout.
- A weakening technical picture points at a potential breakdown to $14.
Polkadot briefly traded above an ascending triangle pattern, targeting uplift to levels slightly above $30. However, the generally bearish cryptocurrency market cut short the hope for recovery. A correction came into the picture with DOT testing the strength of the $20 support.
Although an ascending triangle usually has a bullish impulse, there are times when a breakdown occurs. Meanwhile, DOT has slipped under the triangle's hypotenuse and is staring into a 35% dip to $14.
Polkadot bulls must defend $20 support at all costs
Dot is trading marginally above $20 at the time of writing. It will be challenging for bulls to prevent the price from diving downstream. However, if they manage, the uptrend will be reactivated.
The bearish narrative appears to carry the day based on the retreating Relative Strength Index (RSI). The sharp drop beneath the midline could extend to the oversold area, adding credence to the bearish narrative.
Subsequently, the Moving Average Convergence Divergence (MACD) indicator could soon turn bearish. The call to sell will manifest with the MACD line crossing beneath the signal line. Besides, as the indicator falls back into the negative region, selling pressure will soar. Apart from the support at $20, Polkadot expects to be anchored at $18 and $14, respectively.
DOT/USD four-hour chart
The Parabolic SAR and the SuperTrend indicator on the 12-hour chart have bearish signals. Both of these technical indicators are chart overlays tracking the trend of an asset. The SuperTrend shows positions to either long or short an asset. A call to sell appears when it turns red from green and flips above the price, as shown on the chart.
DOT/USD four-hour chart
At the same time, the Parabolic SAR shows the direction of the prevailing trend. When the parabolas (dots) move above the price, it infers that the trend is mainly bearish. On the other hand, flipping under the price is a bearish signal.
It is worth keeping in mind that holding above $20 would allow bulls to focus on gaining the ground toward $30. Some delay should be anticipated at $26.5, but once the bulls are through, the journey to levels beyond $30 will materialize.