The Bollinger Bands are beginning to tighten on the daily time frame, signaling a possible return of volatility within this market. While the price has been stable for several weeks, we anticipate an increase in both volume and volatility when it is resumed. Furthermore, the Ichimoku Cloud – while remaining bearish – has shown signs of improvement. The Tenken-sen, for example, has continued to break upwards, now sitting at $38 after bouncing off the support level.
We anticipate a return to equilibrium (the Ichimoku Cloud) around $40 before any advances are made – however, if the momentum does continue higher, we would not expect significant resistance until $45.
The market has retraced more than half of the previous bullish momentum – signaling a possible end to the uptrend and indicating that we could see further downside in the coming days. We will be closely monitoring this support level over the next few hours, expecting a higher reaction if tested.
If the support at $38 does not hold, we expect further downside towards $30 – establishing a new dynamic low for this market.
On the daily chart, we see the Polkadot price holding near $38, possibly signaling a rebound later today.
The price of Polkadot has been bearish for the previous week. After a spectacular surge in early November, another all-time high was established at $55 on November 4th.
On the 8th of November, after failing to reach further upside, DOT/USD formed a clear lower low. The strong selling began shortly thereafter, with support at $43. From there, resistance was regained around $46 over the weekend, followed by an advance and consolidation.
Last night, a lower break was observed once again. The Polkadot price plummeted quickly below previous support at $43, with a solid lower low recorded at $38 today. Bears will likely react upwards today as a result of such a significant decline.
DOT/USD is bullish with support at $$38, currently preventing further downside. Additional barriers sit at $43 and $45 before the next major resistance level begins to take hold – at this point, we remain bearish on the Ichimoku Cloud.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on November 17, 2021 4:46 am
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