- Polkadot possibility for a 5th wave extension is void.
- Polkadot price emitted strong sell signals on the RSI.
- Invalidation for the bearish scenario is a close at or above $21.50.
Polkadot price could experience more selloffs in the coming days. There were clear indicators for traders to take profit from last month's successful trade setups.
Polkadot price will drop, but it's one to watch
Polkadot price has disappointed analysts as the current bearish engulfing candle has completely invalidated any possibility for a Wave 4 count. Now that Wave 1 has been breached at $19.96, traders should expect the five-wave impulse to be over. A deep wave correction is possible. DOT price could see $18.50 levels in the coming days.
The Polkadot price rally is likely over, and the Relative Strength Index is providing further confirmation. The apparent double top with a bearish divergence in the 60 levels was a screaming sell signal. Polkadot price has levels to retest in the $18 zone. Traders should allow the selloff to unfold but keep an open eye for potential buy opportunities in the said area.
DOT/USDT 1-Day Chart
If the bulls can establish a closing candle into the $21.50 low, crypto analysts will consider the downtrend thesis invalid and begin looking for buy opportunities. If the Elliot Wave count is correct, the Polkadot price could rally towards the $26 and $27 levels, resulting in a 30% increase from the current price.