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POLKADOT Price To Project Bearish Trend in the Coming Days

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  • DOT/USD is hovering in a tight consolidation range between $26 to $42
  • A breakout of the 20 EMA and 50 EMA could suggest a bearish trend reversal.

DOT/USD on a 12-hour chart is suggesting a range-bound trend. The token has witnessed a sharp 45% decline from its ATH of $48.49, established on April 17.

The price managed to bounce off from the key support level of $26.55, which proves that the bulls have been successful in stabilizing this consolidation trend.

Currently, there are no tradable chart patterns on the 12-hour time frame, demonstrating the possibility of a price recovery. However, if the bearish pressure continues, DOT can flip the support level of $26.55 as resistance, leading to the beginning of a new downtrend.

The bearish crossover will trigger a major sell-off 

DOT/USD on the four-hour time frame is confined in an ascending channel chart pattern which saw a breakout towards the downside. The price to catch an uptrend has to move above the resistance level of $34.84 (FIB 0.382) in a short span of two days. 

The 20 EMA (yellow) is extremely close to traveling below the 50 EMA (red) is depicting a death cross. These signals have a significant role in triggering massive sell-offs. If the price keeps dipping more, traders can count on the 200 EMA(blue) to provide support at $20.99. 

The RSI has dropped considerably to $40.96. This is not necessarily oversold yet, a rebound could occur soon, or the price could still dip lower. 

MACD has also depicted a declining bearish momentum. On a daily, the histogram is still, and size has notably decreased. 

CONCLUSION: DOT has made a lot of progress in its price in the first quarter of 2021. It rose from just $9 at the beginning of the year to reach $48 in the middle of April. Buyers and sellers have been in a battle, thus holding the price in a tight consolidation range.

 If the consolidation lingers or leads to a drop below the support level of $26, the trend could reverse to bearish. The technical indicators don’t look promising, and traders can use this opportunity to take short positions for the time being. 

Fundamentally speaking, DOT is growing in different ways and is adopting new use cases as well. Earlier this month, it was reported that Tether’s stable coin USDT is set to get on the POLKADOT network. Keeping all this in mind, we can conclude that DOT is fundamentally strong, and the bearish trend will not last for long. 

SUPPORT : $26.55 

RESISTANCE : $48.49 

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Author-Malishka

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