Polkadot (DOT) Slumps Further After The Formation Of Bearish Double Top Pattern

Updated:

Key Resistance Levels: $60, $62, $64
Key Support Levels: $40,$38,$36

Polkadot (DOT) Price Long-term Trend: Ranging
Polkadot’s price is in a downward move after buyers retested the $48 overhead resistance. The retesting of the overhead resistance on April 5 and 18, suggests the formation of a bearish double top pattern. This bearish double top pattern will cause the DOT price to fall. Today, the market has fallen to the low of $27.50 and it pulled back. There is the tendency of price falling on the upside.

DOT/USD – Daily Chart

Daily Chart Indicators Reading:
DOT price has fallen below the 21-day SMA and the 50-day SMA which suggests that the coin is in the bearish trend zone. It implies that the coin is capable of falling on the downside. DOT/USD is also at level 37 of the Relative Strength Index period 14. It indicates that the coin is approaching the oversold region of the market.

Polkadot (DOT) Medium-term Trend: Bearish
On the 4-hour chart, the altcoin is in a downward move. On April 18 downtrend; a retraced candle body tested the 61.8% retracement level. This retracement indicates that DOT is likely to fall to level 1.618 Fibonacci extension or the low of $21.70. From the price action, the market has fallen to the low of $29.65 at the time of writing.

DOT/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The altcoin is below the 40% range of the daily stochastic. It is in a bearish momentum. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for Polkadot (DOT)
Polkadot (DOT) has a bearish double top formation. The implication is that the coin will further depreciate on the downside. According to the Fibonacci tool, the market will fall to the low of $21.70.


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.