Altcoins

Polkadot could continue its drawdown following these signals

Polkadot slipped under its decrease trendline following a descending triangle breakdown. Consequently, DOT has shed over 11% of its worth over the past seven days and was the coin that made most weekly losses, among the many prime the cash by market cap.

On the charts, DOT was being assist up by the 4-hour 200-SMA (inexperienced) however remained uncovered to an prolonged sell-off following bearish indicators alongside the Superior Oscillator and MACD. On the time of writing, DOT traded at $45.5, down by 1% over the past 24 hours.

Polkadot 4-hour Chart

DOTUSD 2021 11 13 16 17 07

Supply: DOT/USD, TradingView

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DOT’s descending triangle took form after file ranges have been breached at $55. As soon as a breakdown was noticed from the bearish sample, DOT declined by almost 14% and breached its backside trendline which has had 5 factors of contacts since July.

With short-selling now a menace, DOT might weaken under its 200-SMA (inexperienced) and shift to the 78.6% Fibonacci level- a area which clashed with the day by day 50-SMA (not proven). Ought to the sell-off proceed, the confluence of the 50% Fibonacci stage and an higher sloping trendline might present base for a bullish reversal.

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Reasoning 

Decrease peaks alongside the Superior Oscillator weren’t encouraging for these anticipating a right away comeback to a brand new ATH. Nonetheless, the subsequent low would decide whether or not a bullish twin peak setup might come to mild. The favorable setup would offer some purchase indicators ought to it develop over the approaching classes.

In the meantime, the DMI maintained its bearish outlook and an ADX studying of 44 indicated a powerful directional pattern. Now the 4-hour RSI was in oversold territory and the identical might set off some good points, however when in comparison with the day by day RSI which was about to slide beneath its half-line, some extra draw back was fairly attainable.

Conclusion 

DOT might proceed to commerce south following bearish cues on the MACD and Superior Oscillator. Consumers can look to reply on the 61.8% Fibonacci stage, ought to the 78.6% Fibonacci stage fail to cushion the sell-off.

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