Polkadot (DOT) – Bullish efforts evaporating

Polkadot (DOT) – Bullish efforts evaporating

Posted on Sunday, October 24 2021 at 9:42 pm GMT+0000

Polkadot (DOT) – Long-term analysis

Polkadot (DOT) had been developing in an upward sloping channel over the last couple of months but recently saw its bullish efforts evaporating near the upper channel boundaries and the 161.8% Fibonacci projection level of the 38.74-25.50 downwards wave.

Although the market structure is still clearly bullish at the time being, technical signals started looking weak. The MACD lost steam in the positive territory heading to cross below its signal line, while the stochastic oscillator’s %K dipped below the overbought area, suggesting a potential downside correction.

Hence, some floor is likely needed to be confirmed under the price to keep the bulls active. That could be the 38.74 high. Bouncing off that zone and surpassing the 46.92 level, the coin could touch the 49.75 ATH before sailing higher towards the 261.8% Fibonacci level of 60.16.

On the other hand, if the 38.74 couldn’t stop the decline from evolving, the price may then challenge the aforementioned channel’s lower line ahead of the 50% Fibonacci retracement level at 32.12. deeper below that, it would retest the September 21st low of 25.50, a dive past which would shift the outlook to neutral.