DOT is in the downtrend, the next target is $13.17
The short-term outlook for DOT is quite conservative as the token continues to make lower highs and lower lows. The next downside target for the altcoin is $13.17 if it fails to break the top of the corrective technical pattern at $21.77.
DOT firmly in downtrend
DOT has formed a descending parallel channel on the daily chart which is causing concern for DOT buyers. The altcoin is expected to fall 30% to $13.17 if key support levels are not held.
The first line of defense is the 78.6% Fib retracement level at $17.91. Additional selling pressure could prompt the DOT to test the support line at $16.95 provided by the Momentum Reversal Indicator (MRI), which coincides with the middle border of the parallel channel.
DOT could then next test the Jan. 24 low of $15.8 if bearish sentiment strengthens further. A drop below this level increases the possibility of a slide towards $13.17, where the lower border of the channel coincides with the 127.2% Fib extension.
Investors should note that in this case that target would be a low not seen since July 27th.
DOT/USDT daily chart. Source: TradingView
However, if buying pressure builds, DOT price can target the 21-day SMA at $19.49, which intercepts the 61.8% Fib retracement level.
A surge in buy orders may propel the DOT price towards the 38.2% Fib retracement level at $21.77, which coincides with the upper border of the channel.
If the price attempts to break above the upper trendline of the channel, the bearish outlook may become invalid.
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DOT is in the downtrend, the next target is $13.17
The short-term outlook for DOT is quite conservative as the token continues to make lower highs and lower lows. The next downside target for the altcoin is $13.17 if it fails to break the top of the corrective technical pattern at $21.77.
DOT firmly in downtrend
DOT has formed a descending parallel channel on the daily chart which is causing concern for DOT buyers. The altcoin is expected to fall 30% to $13.17 if key support levels are not held.
The first line of defense is the 78.6% Fib retracement level at $17.91. Additional selling pressure could prompt the DOT to test the support line at $16.95 provided by the Momentum Reversal Indicator (MRI), which coincides with the middle border of the parallel channel.
DOT could then next test the Jan. 24 low of $15.8 if bearish sentiment strengthens further. A drop below this level increases the possibility of a slide towards $13.17, where the lower border of the channel coincides with the 127.2% Fib extension.
Investors should note that in this case that target would be a low not seen since July 27th.
DOT/USDT daily chart. Source: TradingView
However, if buying pressure builds, DOT price can target the 21-day SMA at $19.49, which intercepts the 61.8% Fib retracement level.
A surge in buy orders may propel the DOT price towards the 38.2% Fib retracement level at $21.77, which coincides with the upper border of the channel.
If the price attempts to break above the upper trendline of the channel, the bearish outlook may become invalid.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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