Polkadot (DOT) 1-Hour Technical Analysis for 9-20-2020

POLKADOT PRICE LINE MAKES 2 SIGNIFICANT MOVES

Finally, a Polkadot chart that grabs my attention for a DIFFERENT reason! Usually, it’s blasting off to the next level before I can even think. But this time, it finally looks like a correction is in order. This 1-hour chart comes from the Tradingview website. Let's break it down.

We have two chart events that jump right out at us: first, the price drop below the 50-day EMA yesterday and two, the price line dropping below the 200-day EMA. This is the first time the price has dropped below the 200-day EMA since the 100:1 coin split. And it is also the first time we have seen the price drop below BOTH moving averages.

What does this mean? Usually, it spells “mild correction”. Both of the moving averages are still upward-sloping, and there’s nothing bad like a death cross going on.

The stochastic is sitting at 40%, and looks very weak. While never really dipping deep into the oversold zone, it tried 3 times to move back up but didn’t have the steam. Now if you look closely, you’ll see that on the current rise to the 40% point, the fast line has crossed over the slow line. If it stays that way, the stoch is headed back down.

With the possibility of continued downward movement or crossing into the oversold zone comes a potential price drop. But will it be significant? Thus far, we have seen only mild corrections time after time. So don’t get your hopes up if you are thinking DOT will take a strong correction below $5. You might be waiting for a long, long time.

This is just another DCA opportunity for me. I’m adding DOTS on every red candle dip until it pops off another run. It’s worth sacrificing a cheeseburger and large french fries to pick up a Polkadot Happy Meal instead.

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Carlton Flowers
The CryptoPro

NOT FINANCIAL ADVICE - Entertainment purposes only. Seek a qualified investment advisor before making any decisions on purchasing cryptocurrencies.

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