Polkadot Faces Reversal Risk After TD Sequential Signal

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In the dynamic world of cryptocurrency, analysts continually gauge the ebb and flow of digital assets through various tools and methods. A notable occurrence has taken place recently within the Polkadot ecosystem, catching the attention of seasoned crypto watchers and new investors alike. Noted by crypto analyst Ali, Polkadot’s weekly price chart has exhibited a specific pattern known as a TD Sequential sell setup, signifying a potential pivot point for the asset’s value.

The TD Sequential is a revered technique in the technical analysis realm, designed to identify moments where a price trend might face a reversal. It begins with a ‘setup’ sequence, tallying nine consecutive candles of identical color—green for a rising trend, red for a descending one. When these nine counts are achieved, market connoisseurs brace for a shift. Polkadot has recently completed this setup with a series of nine green candles, fueling speculation about an impending reversal.

Confirming this bearish signal, the weekly price has converged with the 100-day exponential moving average (EMA)—a line that has historically acted as a barrier against upward price movement. With the completion of the TD Sequential setup at this critical juncture, analyst Ali foresees an increased likelihood of sell-offs. Such actions could steer Polkadot down towards a level of $7.50, translating to a reduction exceeding 18% from its current standing.

Contrasting these cautious prognostications, Polkadot’s market price has, up to this point, defied the potential downturn suggested by the TD Sequential signal. The cryptocurrency, in the last 24 hours, notched a nearly 3% increase, breaching the $9.2 threshold. The positive trend stretches over the last month, with DOT experiencing a surge of roughly 39% in value.

The facts lay themselves clear: despite the momentum currently buoying Polkadot’s value, the technical indicators, notably the TD Sequential and the approaching 100-day EMA, imply that a zenith could be on the horizon for this digital currency. Investors and enthusiasts are thus left to watch with bated breath as the tides of the market continue their inexorable fluctuation, each seeking the opportune moment to act on their own strategies within the vast sea of cryptocurrency trading.

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