POLKADOT PRICE ANALYSIS: Descending triangle pattern will the trend turn to bearish?

By October 1, 2021Polkadot
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Polkadot Price Analysis – The Falling RSI Suggest A Substantial Fall For Dot Token In The Near Future
  • The trading volume of DOT coin in the last 24hr at the time of writing this article is -20.07%
  • The price of DOT/BTC and DOT/ETH at the time of writing this article is 0.0006536BTC and 0.009534ETH respectively
  • Descending triangle pattern in the daily chart pattern

LONG TERM VIEW:-

In the daily time frame, we can see that the price is taking resistance near the 50MA and we can also see that there is a descending triangle pattern happening which is a very bearish pattern.

Let’s have a look at the technical indicator, we can see the MACD is showing a red histogram as the MACD line is below the Signal line but we can see the MACD line is changing direction and now heading towards the signal line. In addition to that we can see that RSI is in the neutral zone near the 48 and is pointing towards the overbought zone (70), lastly we can see the Moving average as the 20MA and 50MA is above the 100MA but the 20MA and 50MA is coming close to each other.

Source:- https://www.tradingview.com/x/gxFBROZZ/

SHORT TERM VIEW:-

In the 4hr time frame we can see that the descending triangle pattern is very bearish, and looking at the technical indicator as the MACD is showing a green signal, meaning the MACD line is above the Signal line. Having said that, we can see that RSI is in the neutral zone near 54 and we can see the RSI is pointing towards the overbought zone (70). In the end, we can see that the 20MA and 50MA is below the 100MA and the price is taking resistance on the 50MA

Source:- https://www.tradingview.com/x/nryFeCzJ/

CONCLUSION:-

Looking at both long term and short term we can see that the price is going near the support of the descending triangle pattern as the bulls are pushing the price up if they are able to break the resistance then the trend can be bullish or else the bear will drive the price down when the price reached the support.

RESISTANCE:-$31,$35

SUPPORT:- $25,$23

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