By Nathan Ferguson
- Polkadot price stands below the descending channel median line.
- DOT price forms a bearish flag.
- The alt should overcome the $20 mark to cancel the downtrends.
Polkadot price remains unappealing as the alt coils in a bearish pattern. For now, market participants should look for possible short entries or avoid the crypto entirely. Bears appear to dominate the marketplace as they drag the token lower. While publishing this content, DOT traded at $16.91 and targeted lower levels of $14.50.
Polkadot Still Bearish
Polkadot’s price created its lowest candle this month, around $16.40. Since the alternative token coiled upside within a small parallel channel, which resembles a bearish flag, Polkadot may extend its countertrends for more days. Meanwhile, investors should set alerts at breaches and closes beneath the mentioned channel to be on the profit side of the spectrum.
Polkadot bears appear committed to downtrends, with bearish targets near $15 then 14.50. For now, bulls are yet to contemplate significant changes for a massive countertrend rally. Meanwhile, DOT should climb past the parallel channel’s original level, at $20, to invalidate the bearish outlook. Intraday investors may place a stop beyond the smaller parallel channel when DOT breaches the channel before closing downward.
The invalidation level at $20 forms a risk-reward ratio of 1.35 to the target of $14.50. Breaching the $14.50 area will likely welcome a pullback for the altcoin. Analysts will look for entry-level after this decline, joining the bullish run towards the $24 area, leading to a 20% surge from Polkadot’s current price.
Though Polkadot retains a bearish outlook, the cryptocurrency community remains optimistic for the alt. They trust DOT will rally more than 30% before May 2022 end. Remember, the current price weakness by Polkadot comes as the broad market suffered plummets over the past couple of months.
Meanwhile, Coinmarketcap’s cryptocurrency community believes the token will surge by 33% by 31 May 2022. Historically, the crypto community has had a 63% prediction accuracy rate. Their latest forecast (for March) was 80% accurate. Nevertheless, Polkadot’s price will depend on the global market sentiment for upcoming trends.