Crypto Tony Analyzes DOT

The cryptocurrency trader and analyst Crypto Tony tweeted today that Polkadot’s (DOT) trading charts display a distinct descending triangle pattern.

As a result, the trader predicted that a break below the pattern’s base could be a favorable opportunity to sell short.

Conversely, the trader stated that a rebound from the chart pattern’s base could signify a long opportunity. In this scenario, he hypothesized that the price of DOT could reach the negative trend line.

From a technical standpoint, DOT’s price had been consolidating between $4.160 and $4.345 for the past week and remained within this range at the time of publication.

In addition, the 9-day exponential moving average (EMA) line at $4.295 acted as resistanceis to the cryptocurrency’s price.

If DOT can close a daily candle above the 9 EMA line on its daily chart within 24 to 48 hours, it may continue to ascend and convert the $4.345 resistance level into support within the next few days.

The altcoin will then have a clear path to the next significant price point at $4.625, which coincides with the 50-day exponential moving average line.

Alternatively, if the 9-day EMA line continues to act as resistance for DOT’s price, it may risk retesting the $4.160 critical support level.

This mark is also near the base of the descending triangle pattern highlighted by Crypto Tony in his tweet.

At press time, CoinMarketCap indicated that DOT was being traded for $4.26. This occurred following a 0.52 percent 24-hour decline in price. Despite this, the weekly performance of the cryptocurrency remained positive at +0.43%.