A cryptocurrency analyst has shed light on a potential decline in Polkadot, as a sell signal emerges in its weekly price chart. The analyst, Ali, explains that the TD Sequential indicator, widely used for identifying reversal points in asset prices, has been forming for Polkadot.
The TD Sequential indicator consists of two phases: the setup and the countdown. In the setup phase, candles of the same polarity are counted up to 9. After the ninth candle, a probable reversal in price may occur. If the setup completes with an upward trend (green candles), it may indicate a top, while a downward trend suggests a bottom.
As observed from the chart shared by Ali, the Polkadot weekly price has recently completed the TD Sequential setup phase, characterized by green candles. This completion implies a potential sell signal for the cryptocurrency.
Ali also highlights the 100-day exponential moving average (EMA) as a significant level of resistance for Polkadot. Interestingly, the TD Sequential setup has concluded just as the weekly price of the cryptocurrency approaches this level.
The analyst explains that this convergence of the TD Sequential sell signal and the 100-day EMA could potentially trigger profit-taking and consequently drive Polkadot down to $7.50. If the price were to drop to this level, it would represent a decline of over 18% for the cryptocurrency.
Despite these bearish indicators, Polkadot has exhibited a continuous upward trend in the past day, surpassing the $9.2 level. The chart depicting the performance of Polkadot over the past month reveals a significant surge in the asset’s price.
During the last 24 hours, Polkadot has sustained its bullish momentum, experiencing green returns. Over the course of the past week, the cryptocurrency has risen by almost 39%. However, the TD Sequential and 100-day EMA present technical obstacles that may indicate an impending top for Polkadot.
It is important to note that the article is provided for educational purposes only and does not represent the opinions of NewsBTC regarding investment decisions. The readers are advised to conduct their own research before making any investment choices, as investing entails inherent risks.
The emergence of a sell signal through the TD Sequential indicator suggests a potential decline in Polkadot’s price. Additionally, the resistance posed by the 100-day EMA could contribute to profit-taking and a subsequent drop in value. Despite the recent bullish momentum, investors should exercise caution and conduct thorough research before considering any investment in Polkadot.