DOT’s Price May Continue Its Decline as Bearish Pattern Emerges

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DOT’s Price at Risk of Further Downfall According to Trader
  • Crypto Tony revealed in a tweet today that a descending triangle has formed on DOT’s charts.
  • The trader predicted that DOT’s price breaking below this pattern could be a good short opportunity.
  • Meanwhile, DOT was changing hands at $4.26 after a 24-hour loss of 0.52%.

The cryptocurrency trader and analyst Crypto Tony tweeted today that a clear descending triangle pattern has formed on Polkadot’s (DOT) trading charts. Consequently, the trader predicted that a break below the base of the pattern may be a good short opportunity.

On the other hand, the trader stated that a bounce from the base of the chart pattern could signal a long opportunity. In this scenario, he speculated that DOT’s price may climb to as high as the negative trend line.

Daily chart for DOT/USDT (Source: TradingView)

From a technical perspective, DOT’s price had been in a consolidation phase between $4.160 and $4.345 for the past week, and remained in this consolidation channel at press time. Furthermore, the 9-day EMA line at $4.295 was acting as resistance for the cryptocurrency’s price.

If DOT is able to close a daily candle above the 9 EMA line on its daily chart within the next 24-48 hours, then it may continue to climb to flip the resistance level at $4.345 into support within the following few days. Thereafter, the altcoin will have a clear path to rise to the next significant price point at $4.625, which was also confluent with the 50-day EMA line.

On the other hand, if the 9-day EMA line continues to act as resistance for DOT’s price then it may be at risk of retesting the crucial support level at $4.160. This mark is also around the base of the descending triangle pattern that Crypto Tony had highlighted in his tweet.

Meanwhile, CoinMarketCap indicated that DOT was changing hands at $4.26 at press time. This was after it had suffered a slight 24-hour decrease in price of 0.52%. Nevertheless, the cryptocurrency’s weekly performance remained in the green zone at +0.43%.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.