The Polkadot (DOT) price supposedly broke out from a resistance line but fell back below shortly after. The price will likely break down from its support area and head lower.
Deviation Above Resistance
After reaching an all-time high price of $5.85 on Sept 1, DOT began to decline until it reached a low of $3.53 on Sept 5. The price initiated an upward move afterward, but was rejected at the $5.45 area and began to fall once more. This validated the $5.45 area as resistance. The decline has taken the price to the $3.90 support area, validating it for the fourth time. Each bounce from the area has been weaker, a sign of buyers capitulating. Furthermore, the price has been following a descending resistance line since the previous Sept. 1 all-time high price. Yesterday, the price faked a breakout above that line and has fallen back since. This bearish sign suggests that DOT will likely break down from the current support area and head towards the next support at $2.85.

Wave Count
Measuring from the all-time high price on Sept. 21, it seems that the current price has begun an A-B-C corrective formation (shown in black below), currently trading in the C wave. The sub-wave count is given in red, and it seems that the price has only sub-wave 5 left to complete for the correction. If the A and C waves have a 1:1 ratio, this will take the price all the way down to $2.25. However, since the price is at the final sub-wave, a smaller fall towards the $2.85 support area seems more likely. The invalidation of this bearish count would be above the sub-wave 1 low at $4.95 (red line).
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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