Story Highlights

  • The price action of DOT gave a breakdown of the consolidation range and lost its dominance over the $4 level.

  • Polkadot price continually faces rejection from the 50-day MA and a confluence of resistance trendlines.

  • A break below $3.75 would drop the DOT price to $3.50.

After the breakdown of the triangle pattern, DOT price entered a consolidation range between $3.98 and $4.29. However, a double bottom reversal within the range recently retested the broken triangle pattern to extend the downtrend.

With such a level of bearish pressure, Polkadot price prediction warns that its price could drop to the $3 mark.

Despite Uptober spirits, DOT price has fallen sharply after flipping below the 50-day MA as altcoins have lost ground. Moreover, the bearish trend in Polkadot price shows a pattern of lower highs forming in more than a few months.

The downtrend of the lower highs pattern has resulted in a bearish trendline in action, thus restraining bullish growth. The descending 50-day moving average and the resistance trendline are moving in sync, proving to be a critical supply point.

Currently, DOT price is trading at $3.86 having fallen below the crucial $4 mark. Moreover, the recent sell-off, which saw a 3.86% drop last night, formed a massive bearish engulfing candle.

Technical indicators:

RSI indicator: The daily RSI line crosses below the 14-day moving average and recovers to the oversold boundary. Mimicking the MATIC trend, the possibility of a bullish divergence is low.

EMAs: The declining 50-day and 200-day EMAs represent a major bearish trend for Polkadot.

Will DOT Price Reach $6.30?

Despite a brief recovery earlier this month, DOT price continues to exhibit a bearish pattern. With a triangle breakout followed by a range breakdown, the upper supply zone is crushing Polkadot’s chances of recovery.

As sellers drive the trend, the upcoming support levels of $3.75 and $3.50 come under pressure. While these levels might provide some cushion to slow the downtrend, a drop to $3.28 seems more likely.

On the other hand, the reversal will challenge the confluence of the 50-day SMA and the resistance trendline. After breaking out of it, the chances of the price jumping to the 200-day SMA will increase.