- Polkadot price moves within a bearish rising wedge pattern.
- A reversal in three boxes would coincide with a break in the trendline.
- -27% crash at DOT in sight.
Polkadot price is currently trading within one of the most bearish chart patterns out there: the rising wedge. The rising wedge pattern signals extremes and overbought conditions and is the forerunner of massive corrective moves or broader trend changes.
Polkadot price action warns of excessive moves, bulls could fall into the trap
The Polkadot price is at a turning point. The bulls remain in charge here, but the downside risk is considerable and could trap a number of bulls. A drop below $ 36.50 would be bearish.
DOT / USD $ 0.50 / 3-Box Reversible Point and Figure Chart
The bears will have to wait a while, however. When the Polkadot rate rises to $ 40.50 it will enter pricing mode. In other words, Polkadot will likely hit its previous all-time highs and then move to new highs. As bearish as the rising wedge pattern is, its ability to trigger substantial blow-off top movement has a high probability, especially when an instrument is trading at – or near all-time highs.
In the event of a breakthrough below the rising wedge, the bears should carefully observe the breakthrough and look for retesting to confirm a motion impulse.