In a bearish market of cryptocurrency and major crypto's, we will be looking to short Polkadot from the price level of 11. This price level sits at the resistance level which has major liquidity to grab the polkadot down. Market has been forming lower lows and lower highs. The structure needs to be broken out in order for it to continue its bullish momentum. The support level of 6.95 price level is as important and is our profit target. Beyond this level, we will be looking at the retest of the support turn resistance.

The bearish penant trendline has been formed. As the structure is bearish, we would be looking at the lower trendline to be broken out for sells in order to continue for it to go down. This being said, once the breakout sell continues, we will have confirmation for the market towards the bearish move.

At the resistance level, we have a confluence of the golden retracement area of 75-78.6% level, which equates to a strong rejection zone for the bearish continuation. Above this level, there is a strong chance for the market to continue up.

Both the EMA's are bearish with a bearish death cross. EMA 50 also has a confluence point at the resistance level where we have retracement as well as the trendline. These added technicals will give us a good setup.

The RSI is at 42 and CCI is at -72. Both the oscillators are at the bearish levels. These levels will be held at the bullish over bought region where we might see a bearish divergence. The bearish divergence might be formed at the level of resistance and in confluence with other factors.

Polkadot re entry for shorts

Jun 03 2022