- Polkadot hit a brand new low for the 12 months
- All 2023 positive factors gone as bears proceed to promote DOT/USD
- If Jerome Powell delivers a hawkish speech at present, a descending triangle signifies additional decline for DOT/USD
The cryptocurrency market recovered firstly of the 12 months. After a bearish 2022, traders noticed the beginning of the brand new 12 months as the beginning of a brand new bull market.
Bitcoin led, and different cryptocurrencies adopted. However not all cash managed to shut close to their yearly highs.
For instance, Polkadot hit a brand new low for the 12 months. Particularly, the DOT/USD pair has given up all of its 2023 positive factors, and issues do not look good for traders.
That is very true forward of testimony from Fed Chairman Jerome Powell, anticipated at present. He’ll testify on the semi-annual financial coverage report earlier than the Senate Banking Committee in Washington, DC, later at present, and markets are keen to listen to what he’ll say concerning the future funds fee.
Any hawkish feedback ought to ship the US greenback larger throughout the board. Not solely fiat currencies will react, but additionally cryptos.
Coupled with the technical evaluation image, the bias is bearish, as indicated by a descending triangle.
Dot Chart by TradingView
A Descending Triangle Means Hassle for DOT/USD
A descending triangle is a bearish continuation sample. Subsequently, the value motion following the sample ought to proceed in the identical course as the principle development traveled.
The primary development is bearish, as DOT/USD has fallen from over $52 on the 2021 excessive to $4.7 at present.
To verify the downtrend, the market should transfer a distance equal to no less than the longest phase of the triangle. Calculating it does not make sense, as a result of it virtually factors to 0.
I’m not saying that Polkadot will go to 0. I’m stating that earlier than shopping for low cost cash, it’s higher to have a look at the large image and search for proof on a chart. On this case, because the 2023 positive factors have disappeared, the bulls are trapped. Add the descending triangle and the bias stays bearish, not bullish.
