- Polkadot hit a brand new low for the yr
- All 2023 beneficial properties worn out as bears proceed to promote DOT/USD
- If Jerome Powell offers a hawkish speech right now, the descending triangle signifies additional draw back for the DOT/USD pair.
Originally of the yr, the cryptocurrency market took off. After the autumn of 2022, buyers noticed the start of the brand new yr as the beginning of a brand new bull market.
Bitcoin took the lead, adopted by different cryptocurrencies. Nonetheless, not all cash managed to shut close to their yearly highs.
Polkadot, for instance, made a brand new low for the yr. Particularly, the DOT/USD pair returned all of its 2023 development and issues look good for buyers.
That is very true forward of Fed Chairman Jerome Powell’s testimony due right now. Later right now, he’ll testify on the semiannual financial coverage report earlier than the Senate Banking Committee in Washington, and markets are anxious to see what he has to say concerning the future funds price.
Any hawkish commentary ought to push the US greenback greater. Not solely fiat currencies will reply, but additionally cryptocurrencies.
Together with the technical evaluation image, the bias is bearish as proven by the descending triangle.
Polkadot Chart by TradingView
Descending triangle means issues for DOT/USD
The descending triangle is a bearish continuation. Therefore, the worth motion following the sample ought to proceed in the identical route because the underlying development.
The primary development is bearish on condition that DOT/USD has fallen from above $52 in 2021. at its peak to the present $4.7.
For a bearish sample to be confirmed, the market would wish to go a distance equal to at the least the longest section of the triangle. There isn’t any level in calculating as a result of it reveals virtually 0.
I am not saying Polkadot will go to 0. I am saying it is higher to have a look at the larger image and search for the apparent on the chart earlier than shopping for low-cost cash. On this case, when in 2023 revenue is gone, bulls are caught. Add a descending triangle and the transfer stays bearish fairly than bullish.
