Polkadot is a fundamentally strong and sound project. This project dived reasonably but did not dip as much as expected. Given the current situation of a bearish trend across the cryptocurrency board, we will be looking to short Polkadot. At a strong resistance level of 11.50, we anticipate a rejection at the resistance level. From the resistance level, the market has the potential to drop towards the support level towards the  7.50 price. We will be looking for a bearish confirmation at the resistance level, like an engulfing or a pinbar.

The descending trendline has been broken out for buys. The candles have validated the breakout buy but the structure still stands bearish until the resistance is broken. Therefore, we need to be vary of the fact of being bullish just now.

The golden retracement area of 75-78.6% is in confluence with the resistance level. This confluence is strong enough to drive the polkadot prices down.

Both the EMA's are in a bearish trend with a bearish death cross. This market is retesting the EMA 50 after being broken out for sells and the retest is occurring at the resistance level, which adds another technical factor to drive down the prices.

RSI is bullish at the 54 level, which is near about the neutralized level. Whereas, CCI is below the neutralized levels at the -17 region, which is a bearish region. In this case, we will be waiting for the market to break the neautralized levels for the RSI in order to continue its dive down.

Overall, crypto market is in a downward trend and is indecisive. Taking bullish long positions can turn out to be risky until unless properly scrutinized with the break of the bullish structure.

Stacks on polkadot

May 19 2022

Take Profit +42.22%

Holding time 24d11hr

11.396

Entry price

6.585

Take profit price