Polkadot (DOT) – in downside correction modePosted on Monday, November 15 2021 at 9:19 pm GMT+0000
Polkadot (DOT) has been in a downside correction mode for almost 10-days now and seems stuck in between the 20- and 40-day simple moving averages.
At the current stage, momentum oscillators are revealing a bearish status, signaling that the current retracement might get extra legs. The CCI oscillator is still diving in the negative territory and the stochastic continues to preserve its strong bearish charge.
Unless the 40-day simple moving average manages to shut the way down, the price could tumble towards the October 27th low coinciding with the 38.2% Fibonacci retracement level of the 10.37-55.13 uptrend around 38.03. Any violation at that level, where also the ascending trendline drawn from July lows resides, will dismantle the positive structure and pave the way towards the 61.8% Fibonacci level and the nearby September 21st low of 25.50.
However, at the time being, the overall bullish outlook is still maintained as the price is trading well above the ascending trendline and the current structure of higher tops and higher bottoms holds intact. Hence, a forceful move above the 20-day simple moving average that has been capping bullish actions over the past few days, currently seen around 48.00 and the 49.50 level, could be the key for a rally towards the 55.13 high. Next, with the price entering uncharted waters, focus will turn towards the 63.00 and 75.80 levels.