Responding to the crypto market correction, the Polkadot (DOT) price action forms an inverted flag pattern and preps a breakout of the support trendline. Hence, the bearish continuation pattern may shortly showcase a support trendline fallout to retest the $17 mark.
Key points:
- The $20 is a troublesome barrier for DOT buyers.
- Range breakout will trigger a directional move in DOT price.
- The 24-hour trading volume in the Polkadot coin Inu coin is $662.3 Million, indicating a 63.5% gain.
Source-Tradingview
A bearish reversal from the February 8th peak($23) triggers a sideways rally for Polkadot (DOT). Unfortunately, this V-shaped reversal tumbled the altcoin by 28.6%, bringing it to $17.18 support.
The coin chart displays a relief rally that surged the price by 15.4% higher than the $19.66 mark. However, this minor recovery reflects an inverted flag pattern.
The pattern usually accelerates the prevailing trend, after a minor recovery such as this one. If the coin price breached the bottom support, the correction rally would extend and reach the Feb low support at $14.20.
On a contrary note, if buyers defend the support trendline, and rise above the 50-day EMA, the DOT price could rise to $23.
Technical Analysis
The downsloping 50-and 200-day EMAs project a solid bear cycle, with the 50-day providing the recent hurdle rejecting the uptrend. However, a potential breakout of the 50-day EMA will reach the 200-day EMA accounting for a growth of 20%.
The MACD and signal lines are ready to merge below the zero line and will potentially ignite a bullish crossover. Hence, the indicator is projecting a weak buying signal and will shortly make it official with a crossover.
Resistance levels- $22.5, and $27.3
Support levels- $16.78 and $10
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/polkadot-price-analysis-inverted-flag-pattern-could-extend-dot-correction/