Two moving averages have rejected the Polkadot pricing, and DOT shows a surge in volume transactions as the price declines. A break of $8.00 invalidates the negative outlook premise. The price of polka dots appears to be headed toward record lows.
The price of polka dots exhibits a downward trend
Polkadot pricing (1) shows that a sweep-the-lows event is taking place. The innovative smart contract and gaming token DOT (2), which had previously crossed a rising trend line, fell by 24% last month. The trend line supported the summer as prices were triangulated back and forth. Compared to other sell-offs, the most recent sell-off showed an increase in volume and appeared to be a continuation pattern.
As a result of the bulls being rejected from the 8-day exponential and 21-day simple moving averages, the polka dot price is presently bidding at $6.30. On longer time horizons, the Relative Strength Index is back above support, suggesting that the recent sell-off could be transitory. In the upcoming days, a retracement to $7.00 is likely.
A violation of the $8,00 swing high from September 12 (3) proves that the bearish argument is invalid. If the breach happens, there may be another upward rise with a target price of $10, which would represent an increase of 85% over the current Polkadot price. However, the triangle breach might cause a significant sell-off in the big picture. Technical analysis suggests that a liquidation into the $3.50 level might happen in 2023. The value would drop by 40% from the present market value due to such a fall.