A cryptocurrency analyst has recently highlighted a potential sell signal in Polkadot’s weekly price chart, indicating a potential decline in the cryptocurrency’s value. This analysis is based on the TD Sequential indicator, which is commonly used in technical analysis to identify potential reversal points in an asset’s price. In this article, we will explore the implications of this sell signal and its potential impact on Polkadot’s price.
The TD Sequential indicator consists of two phases: the setup and the countdown. During the setup phase, candles of the same polarity are counted up to nine. If the setup phase completes with green candles, it suggests a possible top for the asset. Conversely, if the price has been decreasing, a bottom might be in. The countdown phase begins after the setup phase and lasts for thirteen candles. At the end of the countdown, another potential reversal in the asset’s price may occur.
Analyzing Polkadot’s weekly price chart, it is evident that the cryptocurrency has recently completed the TD Sequential setup phase with green candles, indicating a potential sell signal. Additionally, the chart displays the data for the 100-day exponential moving average (EMA), which has previously acted as a resistance level for the asset. Notably, the completion of this TD Sequential setup coincides with Polkadot approaching the 100-day EMA.
According to the analyst, this confluence of events could lead to a spike in profit-taking, potentially driving Polkadot’s price down to $7.50. This would represent a drop of over 18% from the current spot price. Despite these bearish developments, Polkadot has experienced a rise in price over the past day, surpassing the $9.2 level.
Looking at Polkadot’s performance over the past month, there has been a significant increase in its price. The asset has witnessed a bullish momentum, with a rise of nearly 39% during the past week alone. However, the technical obstacles posed by the TD Sequential indicator and the 100-day EMA suggest that the cryptocurrency may be approaching a potential top.
While Polkadot’s recent price surge suggests bullish momentum, the presence of a TD Sequential sell signal and the resistance posed by the 100-day EMA indicate a potential decline in the cryptocurrency’s value. Investors should remain cautious and conduct their own research before making any investment decisions. The cryptocurrency market is inherently volatile, and investing carries inherent risks. It is essential to fully understand and evaluate the factors influencing an asset’s price before engaging in any trading activities.
Disclaimer: This article is provided for educational purposes only and does not represent the opinions of the author. NewsBTC does not provide investment advice and encourages readers to conduct thorough research before making any investment decisions. Investing in cryptocurrencies carries inherent risks, and individuals should carefully evaluate their risk tolerance and financial situation before engaging in any trading activities.