- Polkadot price has been on a downtrend since December 26, going through a sturdy rejection however the 50-day SMA supplied buoyance.
- However, DOT might fall 5% to the availability zone imply threshold at $6.9510, beneath which downtrend affirmation will manifest.
- The bearish thesis might be invalidated upon a day by day candlestick shut above the 78.60% Fibonacci stage at $8.2960.
Polkadot (DOT) price has been on a downtrend, with its upside potential capped by a descending trendline. To the south, DOT stays buoyant due to the help provided by the 50-day Exponential Shifting Common (EMA) at $7.3100, strengthened by the ascending triangle that completes the triangle.
Additionally Learn: Polkadot Price Prediction: DOT could continue the uptrend, rise 30% if these conditions are met
Polkadot price fills up a triangle
Polkadot (DOT) price motion is filling up a triangle as it consolidates beneath a descending trendline whereas sustaining above an ascending trendline. The percentages favor the draw back as the Relative Power Index (RSI) is dropping to indicate falling momentum.
In the identical means, the Shifting Common Convergence Divergence (MACD) indicator is transferring south after crossing beneath the sign line (orange band) throughout late December.
Elevated promoting strain might see Polkadot price lose the help provided by the 50-day EMA at $7.3100, which is nearly on the confluence with crucial Fibonacci stage, 61.8%, at $7.2860.
An prolonged fall might see the DOT price fall 5% into the demand zone, stretching between $6.7800 and $7.1220. A break and shut beneath is midline at $6.9510 would verify the continuation of the downtrend.
Within the dire case, Polkadot price might slip beneath the demand zone, to tag the 50% Fibonacci stage at $6.5760, beneath which the massive image bullish outlook could be invalidated. The following logical goal for DOT in such a situation could be the 100-day SMA at $5.9720, or worse, the 38.2% Fibonacci stage at $5.8670. Such a transfer would denote a 20% fall beneath present ranges.
DOT/USDT 1-day chart
On-chain metrics supporting Polkadot price bearish outlook
Santiment knowledge exhibits falling social quantity and social dominance, pointing to lowered mentions of the DOT coin throughout crypto-related social media.
DOT Social Quantity, Social Dominance
Improvement exercise has additionally dropped from 77 to 71 between January 11 and January 18, representing a 7.7% drop in a week, with the shopping for energy of the whales nonetheless low. That is seen within the drop within the proportion of stablecoin whole provide held by whales with greater than $5 million. Particularly, this metric has dropped to 50.62, relative to the 51.09 highs of December.
DOT Improvement Exercise, Proportion of stablecoin whole provide held by whales
Alternatively, if shopping for strain will increase, Polkadot price might shatter previous the falling trendline of the triangle to tag the 70.5% Fibonacci stage at $7.8090. Additional north, the positive factors might see DOT market worth hit the 78.6% Fibonacci stage at $8.2960, with a break and shut above it invalidating the bearish thesis.
This could set the tempo for a continuation of the development, with Polkadot price more likely to climb to fill the market vary at $9.5820, ranges final examined on December 26.