SHORT DOT/USDT: PULLBACK EXPECTED AS SEPTEMBER APPROACHES...
The live Polkadot price today is $30,03 USD with a 24-hour trading volume of $4.530.304.994 USD, - 0,57% in the last 24 hours. The current CoinMarketCap ranking is #9, with a live market cap of $29.659.850.662 USD.
On daily time frame the price just tested the key level of $31 level and it got rejected. When this key level will be broken, it can signify the beginning of a strong bullish pattern.
Since the bullish hammer candle has formed at the end on July, the asset has been in a medium-term uptrend, as clearly highlighted in the graph by the black line. As we can see, the price consistently moved to the upside, finding resistance on the higher level of Keltner channel till 21 Aug, when it then suffered a pullback to the EMA level of the channel. Starting 26 AUG the moving average of the channel acted as strong support, immediately pushing back the price above $28.8 (previous resistance) up to $31.
Now with the beginning of September (historically a bearish month) I expect a general market correction that will push back the price to test previous support levels. Moreover, RSI index is now cooling down after being overbought and MACD crossed over the trend line, all signals of a probable price retracement. Historically, whenever the price reached overbought level, RSI immediately suffered a pullback to 58 level, and if broken, 51 level. For these reasons I suggest opening a short position.
Personally I expect the asset to test $31 level again and therefore reach the entry point highlighted in the graph, for latter moving to the downside, so for low risk trade you should wait for confirmation.
As for the targets, personally I expect the asset to reach $23 level where it can find lot of support and pressure from buyers, therefore it can suffer a rapid pump to the upper level of the Keltner channel again. For this reasons I would set the targets up to $23 level and later see if the price is confirming the bearish trend or reversal will occur.
POSITION: LONG
ENTRY PRICE: > 31$
TARGETS: 28.8 / 26.8 / 24.5 / 23. 4 / 20.9 / 17.3
STOPLOSS: $34
PLEASE NOTE THIS IS NOT FINANCIAL ADVICE.
On daily time frame the price just tested the key level of $31 level and it got rejected. When this key level will be broken, it can signify the beginning of a strong bullish pattern.
Since the bullish hammer candle has formed at the end on July, the asset has been in a medium-term uptrend, as clearly highlighted in the graph by the black line. As we can see, the price consistently moved to the upside, finding resistance on the higher level of Keltner channel till 21 Aug, when it then suffered a pullback to the EMA level of the channel. Starting 26 AUG the moving average of the channel acted as strong support, immediately pushing back the price above $28.8 (previous resistance) up to $31.
Now with the beginning of September (historically a bearish month) I expect a general market correction that will push back the price to test previous support levels. Moreover, RSI index is now cooling down after being overbought and MACD crossed over the trend line, all signals of a probable price retracement. Historically, whenever the price reached overbought level, RSI immediately suffered a pullback to 58 level, and if broken, 51 level. For these reasons I suggest opening a short position.
Personally I expect the asset to test $31 level again and therefore reach the entry point highlighted in the graph, for latter moving to the downside, so for low risk trade you should wait for confirmation.
As for the targets, personally I expect the asset to reach $23 level where it can find lot of support and pressure from buyers, therefore it can suffer a rapid pump to the upper level of the Keltner channel again. For this reasons I would set the targets up to $23 level and later see if the price is confirming the bearish trend or reversal will occur.
POSITION: LONG
ENTRY PRICE: > 31$
TARGETS: 28.8 / 26.8 / 24.5 / 23. 4 / 20.9 / 17.3
STOPLOSS: $34
PLEASE NOTE THIS IS NOT FINANCIAL ADVICE.
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