The post DOT Price Analysis: DOT May Tank to $3.50 as Bloodbath Worsens appeared first on Coinpedia Fintech News
Following the triangle pattern breakdown, the DOT price enters to trade in a consolidation range, between the $3.98 and $4.29 marks. However, the recent double bottom reversal within the range retests the broken triangle pattern to prolong the downtrend in motion.
With such a degree of bearish pressure, the Polkadot price prediction warns of a potential drop to the $3 mark.
With the altcoins taking a step back despite the Uptober spirits, the DOT price drops sharply after taking a reversal from the 50-day EMA. Moreover, the bearish trend in Polkadot prices display a lower high formation for more than a few months.
The declining trend of the lower high formations leads to a bearish trendline in action that keeps the bullish growth in check. The declining 50-day EMA and the resistance trendline move in sync and prove to be critical supply points.
Currently, the DOT price trades at $3.86 as it falls below the crucial $4 mark. Moreover, the recent sell-off, accounting for a 3.86% drop last night, creates a huge bearish engulfing candle.
Technical Indicators:
RSI indicator: The daily RSI line crosses under the 14-day SMA and reverts to the oversold boundary. Mimicking the MATIC trend movement, the chances of a bullish divergence are lower.
EMA: The falling 50-day and 200-day EMA represents a major bearish trend in motion for Polkadot.
Will DOT Price Reach $6.30?
Despite the short phase of recovery earlier this month, the DOT price keeps playing out the bearish patterns. With the triangle breakout, followed by the range breakdown, the overhead supply zones are crushing the recovery chances for Polkadot.
With the sellers driving the trend, the upcoming support levels of $3.75 and $3.50 are under pressure. Although the levels may provide some cushion to delay the downtrend, the chances of a downfall to $3.28 seem higher.
On the flip side, reversal will challenge the confluence of the 50-day EMA and the resistance trendline. Upon breakout, the chances of a price jump to the 200-day EMA will be increased.
