Shorting Polkadot
Vasl Capital
DOTUSD·
May 01 2022
Take Profit +12.30%
Holding time 0hr
17.086
Entry price
14.984
Take profit price
1
Polkadot, as being in a bearish trend along with all the cryptocurrencies has broken the solid support at 17, which now has turned a resistance. We will be looking to short Dot at this level of resistance till the next support/demand zone. Market has been forming lower highs and lower lows and has not been able to breach the previous highis. Due to this, we are still in a bearish momentum on Polkadot.
The two descending trendlines have been rejected by the price action from the resistance level. This confluence adds to another technical factor. Also once the price moves back up towards the resistance, we will be seeing a double top.
Our short position has the confluence of the retracement level of 61.8%. This level stands strong with the resistance level.
Both the EMA's are bearish with a breaish deatah cross. Earlier, the EMA 50 was broken out for sells but was unable to be retested. At the resistance level, we may see a confluence of the EMA 50 retest which has a cumulative bearish impact.
Although RSI and CCI, are in an over sold terriotry for the current scenario, we need to see the reaction of the prices once market taps the neutral region on thie oscillators.
CONCLUSION: BEARISH