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Vikram
May 28, 2022
by Vikram

DOT Technical Analysis: Bearish Patterns Arise In Multiple Timeframes

dot
DOT price shows a falling wedge pattern within the bearish channel, increasing the chances of a downfall testing the bottom of $7.

Key technical points:

  • DOT market value inclined by 7.96% in the last 24 hours.

  • Price action hints at the formation of a morning star pattern.

  • The 24-hour trading volume of Polkadot is $1.134 Billion, indicating a rise of 10.30%.

    • Past Performance of DOT

    Prices for DOT fell 60% in the past two months, resulting in the breakout at $10 following resistance near the $23 level. However, the downfall did find support at $7, resulting in the evening star pattern that resurfaces the market value higher than $9. But, the trend of decline persists and is a warning of falling to test the low of $7.

    TradingView Chart

    DOT Technical Analysis 

    A falling trend shows a contraction in the price range in the 4-hour chart, leading to a falling wedge pattern. The bearish patterns support the overall movement in the more considerable timeframe reflecting a high possibility of a downfall.

    TradingView Chart

    The MACD and the RSI indicators suggest the possibility of an upside breakout of the falling wedge. This is because of the bullish divergence in the RSI and the ongoing upward trend in the MACD and signals lines.

    Siding with sellers, the Stochastic RSI indicator displays the K and D lines dropping below the overbought area following the bearish crossover, marking a selling spot. Therefore, the indicator shows a high possibility of a bearish breakout of the falling wedge.

    In a nutshell, the DOT technical analysis projects a bullish attempt within the falling wedge.

    Upcoming Trend

    Suppose the morning star pattern is formed successfully in the falling wedge; the bullish reversal will test the overhead resistance trendline close to $11. However, a downtrend continuation will test the bottom of $7.

    Resistance Levels: $10.5 and $11

    Support Levels: $7.5 and $7

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    Polkadot DOT
    DOT Technical Analysis: Bearish Patterns Arise In Multiple Timeframes
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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