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Analysis

Can DOT challenge the current downtrend?

February 21, 2022 - Around 2 mins mins to read

Since hitting an all-time high on Nov. 4, the polkadot bears have been in complete control of the DOT’s decline in the parallel channel (yellow). The recent decline pushed the price below the 6-month trendline support (now resistance).

A close below the control point (red) near $17.2 increases the likelihood of a deeper decline that is likely to result in a buyer-seller clash in the $17-$14 range before moving higher comes.

Can DOT challenge the current downtrend

Source: TradingView

The recent bearish streak (from its ATH) saw the altcoin lose more than 71% of its value, falling to a 25-week low on Jan. 1.

As the control point acted as a strong buy zone, the DOT reversed and formed a bearish flag on its daily chart.

While the bearish flag breaks below the 6-month support (now resistance), the price has yet to break out above the 20-50 EMA, increasing the likelihood of high volatility in the coming days. Furthermore, after the first retest of trendline resistance, the altcoin reversed course, confirming the downtrend.

Thus, once the closes below $17, it will be a major confluence that will confirm the downtrend. If so, the altcoin is likely to retest the $14 level in the coming days.

Can DOT challenge the current downtrend

Source: TradingView

The RSI has been struggling to find a close above the midline since mid-November, confirming the downtrend. Now it’s towards 32.

The Squeeze Momentum Indicator showed a gray dot on February 20, forecasting a period of high volatility. With -DI trending north, DOT remains limited to signs of a solid recovery.

DOT has lost key 61.8% Fib support, coinciding with 6-month trendline resistance, further amplifying the current downtrend. Once the DOT is below the control point, it is expected to find a bottom near $14 before an uptrend.

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Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Analysis

Can DOT challenge the current downtrend?

Since hitting an all-time high on Nov. 4, the polkadot bears have been in complete control of the DOT’s decline in the parallel channel (yellow). The recent decline pushed the price below the 6-month trendline support (now resistance).

A close below the control point (red) near $17.2 increases the likelihood of a deeper decline that is likely to result in a buyer-seller clash in the $17-$14 range before moving higher comes.

Can DOT challenge the current downtrend

Source: TradingView

The recent bearish streak (from its ATH) saw the altcoin lose more than 71% of its value, falling to a 25-week low on Jan. 1.

As the control point acted as a strong buy zone, the DOT reversed and formed a bearish flag on its daily chart.

While the bearish flag breaks below the 6-month support (now resistance), the price has yet to break out above the 20-50 EMA, increasing the likelihood of high volatility in the coming days. Furthermore, after the first retest of trendline resistance, the altcoin reversed course, confirming the downtrend.

Thus, once the closes below $17, it will be a major confluence that will confirm the downtrend. If so, the altcoin is likely to retest the $14 level in the coming days.

Can DOT challenge the current downtrend

Source: TradingView

The RSI has been struggling to find a close above the midline since mid-November, confirming the downtrend. Now it’s towards 32.

The Squeeze Momentum Indicator showed a gray dot on February 20, forecasting a period of high volatility. With -DI trending north, DOT remains limited to signs of a solid recovery.

DOT has lost key 61.8% Fib support, coinciding with 6-month trendline resistance, further amplifying the current downtrend. Once the DOT is below the control point, it is expected to find a bottom near $14 before an uptrend.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page