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Today, we are excited to share a new article about Polkadot!. Be sure to follow Bitrue's Official Twitter and Telegram to stay updated!
Introduction
A cryptocurrency analyst recently highlighted a concerning trend in Polkadot's weekly price chart, signaling a possible downturn for the asset. Ali, the analyst, pointed out the emergence of a TD Sequential sell signal, a significant technical indicator used to identify potential price reversals in assets.
The TD Sequential indicator consists of two phases: the setup and the countdown. In the setup phase, consecutive candles of the same polarity are counted up to nine, indicating a probable reversal. The subsequent countdown phase comprises thirteen candles, marking another potential reversal point.
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Implications of the TD Sequential Signal
In Polkadot's recent weekly price chart, the completion of the TD Sequential setup phase, marked by nine consecutive green candles, suggests the formation of a sell signal for the cryptocurrency.
Simultaneously, the analyst showcased data for the 100-day exponential moving average (EMA), historically a point of resistance for the asset. Interestingly, the completion of the TD Sequential setup aligns with Polkadot's approach to the 100-day EMA, hinting at a probable spike in profit-taking.
Anticipated Drawdown and Current Performance
The completion of the TD Sequential setup coupled with the proximity to the 100-day EMA could potentially lead Polkadot to a drawdown, with projections indicating a decline to approximately $7.50, signifying an 18% drop from its current level.
Despite the bearish signals, Polkadot has witnessed a recent upswing, marking a 3% increase in the last 24 hours and surpassing the $9.2 mark. This surge is part of a broader positive trend, reflecting a nearly 39% increase in the past week.
Outlook and Potential Challenges Ahead
While Polkadot continues to showcase short-term positive momentum, technical hurdles such as the TD Sequential sell signal and resistance at the 100-day EMA suggest a looming reversal for the asset. The ongoing bullish run may face headwinds as the cryptocurrency navigates these critical indicators, potentially signaling an impending correction.
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