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Analyzing Polkadot’s head and shoulders – Is a drop to $3.47 likely?
The recent uptrend of the cryptocurrency market has taken a bearish turn, as Polkadot (DOT) is now showing signs of a potential downturn. One of these warning signs is the formation of a head and shoulders pattern on its one-day chart.
At press time, DOT was trading at $7.20 after gaining 2% in the last 24 hours. However, this surge has come with a decline in trading volume, which could be an indication that the bulls have run out of steam. In fact, Polkadot’s trading volume has dropped by 9% to $290M.
It is essential to analyze DOT’s recent price action, as it now appears to be forming a bearish head and shoulders pattern on its one-day chart. This technical pattern, also known as the “reversal pattern,” typically signals that a reversal in the current trend is imminent.
Source: ambcrypto.com
