Briefly –
- The 1-day chart shows a possible symmetrical triangle pattern for Polkadot.
- RSI remains neutral near 50, indicating no directional bias.
- The 50-DMA prevents downswings as the 21-DMA remained the immediate resistance.
As the fateful week in the cryptocurrency market appears to end, DOT bears seem to tighten their positions. That comes after the token encountered rejection around the $34 level. Without trend reversal, DOT might suffer a 2nd consecutive week of plummets.
The cryptocurrency market sentiment remains dim after the recent clampdown by PBOC. Some analysts believe that the actions by the central bank relate to China’s Evergrande default narrative and Fed’s tapering signs.
DOT has lost 1.75% in one day to trade at $30.33 at the moment. On a weekly time frame, the alternative crypto trades 15% low.
DOT Bears Testing Bullish Commitments
According to the daily price chart, DOT traverses its 3-week-old symmetric triangle pattern. That is after bulls failed to secure grounds beyond the declining trend-line resistance under $34. The asset requires daily closing above this mark to reverse its latest downswing. That way, it can confirm a breakout of the symmetrical triangle to the upside, catalyzing another swing high towards $40.
Meanwhile, Polkadot buyers will need to overcome the nearest resistance near the 21-DMA at $32.33 for a significant turnaround. The 14-day RSI hovers around the midline, indicating that the altcoin might record a range breakout in any direction.
If the 21-DMA obstacle continues to prevent upsurges, Polkadot might extend the retracements to the ascending 50-day Moving Average at $28.38. The level will provide an instant bolster to Polkadot bulls. After that, sellers will target the horizontal 200-day Moving average support of around $27.70. DOT bulls will have their last defense line at the climbing trend-line support near $26.33.
The latest downtime in the cryptocurrency space comes after PBOC declared all transactions involving crypto are illegal. The bank stated that digital tokens fuel criminal activities, thus threatening the nation’s financial sector. That also comes as China aims to meet its carbon goals.
China has been attacking digital assets since 2013. However, the country appeared to stiffen its move this year.