Polkadot (DOT) – Expected to remain under bearish controlPosted on Wednesday, October 5 2022 at 8:31 pm GMT+0000
Polkadot (DOT) is struggling to stretch the recent bounce past the 20-day exponential moving average and continues to trade heavily inside the falling regression channel stretched from the August 11th peak.
The negatively charged 20- and 55-day exponential moving averages are safeguarding the current 2-month-old negative structure while the oscillators are flagging bearish signals. The stochastics posted a bearish crossover near the 50-neutral threshold, and the ROC just dived into the negative territory, after slicing through its ascending trendline.
Therefore, sellers may keep driving the market in the next sessions, though some consolidation around the nearby 6.01 – 5.97 support area linking the July 13th and September 21st bottoms cannot be excluded. By cracking that bar, they will initially pursue the 161.8% Fibonacci extension level of the latest up-leg at 5.45. Lower, they will shift their attention towards the 227.2% Fibonacci level of 4.90.
Alternatively, if the bulls push harder and jump beyond the 20-day exponential moving average, they will then challenge the tough resistance region of 6.81 – 6.76, encompassing the September 7th inside swing low, the most recent top, and the upper bar of the regression channel. Any significant step higher from here, and especially beyond the 55-day exponential moving average seen at 7.03 could bolster buying appetite towards the September 12th high of 8.05.
In a nutshell, downside forces are expected to dominate in the coming sessions, and a decisive step below 5.97 is expected to trigger the next bearish action.