Polkadot (DOT) Trades Beneath Ascending Channel – Should You Sell?
After the massive bullishness that started on July 21, Polkadot (DOT/USD) appears to lose momentum. The digital coin attempted to break above its high near the resistance at $29. After that, bears joined, taking the coin’s price lower.
For now, DOT/USD seems to maintain a downwards trend after breaking beneath an ascending trend-line that started almost one month ago.
DOT-USD Technical Outlook
According to DOT/USD’s 4H price chart, the crypto had broken beneath the ascending trend-line during the August 24 sessions. The asset registered downward movements before creating a bullish bar near minor support on August 26. The bullish bar attempted to push Polkadot higher. However, the altcoin retreated beneath the trend-line once more.
While publishing this content, DOT trades inside narrow ranges around $25.11. Meanwhile, the token seems to encounter lots of resistances that prevent upside price movements. According to technical indicators, DOT might see continuous consolidation with a possible retreat to the downside before another bullish run. However, Should you sell your DOT tokens today?
A Look at the Daily Chart
Like the four-hour chart, the daily price chart indicates DOT/USD trading beneath the ascending trend-line. The price chart depicts the pair retreating lower from its resistance zone. Meanwhile, if the coin breaks beneath the trend-line, it will indicate the potentials for further losses.
According to the daily and 4H charts analysis, the pair’s path will less resistance remain the downward one. However, that does not mean that the recent break beneath the ascending line translates to the asset’s bearishness.
For now, DOT/USD consolidates after it fails to break above the resistance zone at $27 – $29. Keep in mind that most top coins register price consolidation at the moment. Over the past 24 hours, BTC lost 0.75% as Ether dropped by 0.81%.
As much as the DOT/USD showcases a near-term bearish strength, it might not be the best time to sell your digital coins. Sell trades appear to contradict the bullishness with Polkadot in more than one month. The crypto might face challenges to maintain its upside moves.
With this analysis, traders might have to wait for the token to retreat towards the support near $19.5 (on the daily price chart). Investors can buy when DOT/USD retreats the $19.5 price levels.