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The cryptocurrency trader and analyst Crypto Tony tweeted today that a clear descending triangle pattern has formed on Polkadot’s (DOT) trading charts. Consequently, the trader predicted that a break below the base of the pattern may be a good short opportunity.
$DOT / $USD – Update
— Crypto Tony (@CryptoTony__) September 9, 2023
Probably the most clear descending triangle pattern we have here legends. Break below we short, or bounce up. we long up to the trend line 💯 pic.twitter.com/hVqh1kueNQ
On the other hand, the trader stated that a bounce from the base of the chart pattern could signal a long opportunity. In this scenario, he speculated that DOT’s price may climb to as high as the negative trend line.
From a technical perspective, DOT’s price had been in a consolidation phase between $4.160 and $4.345 for the past week, and remained in this consolidation channel at press time. Furthermore, the 9-day EMA line at $4.295 was acting as resistance for the cryptocurrency’s price.
If DOT is able to close a daily candle above the 9 EMA line on its daily chart within the next 24-48 hours, then it may continue to climb to flip the resistance level at $4.345 into support within the following few days. Thereafter, the altcoin will have a clear path to rise to the next significant price point at $4.625, which was also confluent with the 50-day EMA line.
On the other hand, if the 9-day EMA line continues to act as resistance for DOT’s price then it may be at risk of retesting the crucial support level at $4.160. This mark is also around the base of the descending triangle pattern that Crypto Tony had highlighted in his tweet.
Meanwhile, CoinMarketCap indicated that DOT was changing hands at $4.26 at press time. This was after it had suffered a slight 24-hour decrease in price of 0.52%. Nevertheless, the cryptocurrency’s weekly performance remained in the green zone at +0.43%.
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