– Polkadot price keeps trading in a bearish pattern.
– DOT could soon see bulls evacuating the current price area in search of a better deal lower.
– A better entry level is offered nearly 9% lower at $5.30.
Polkadot (DOT), Cardano and other altcoins are all plagued by the next big element that could trigger an existential crisis for the crypto industry.With payment service provider Silvergate exiting the crypto industry, the payment service network is at risk of breaking down.After FTX and Terra’s LUNA, this could be that one crisis too many for investors to bear, leading them to evacuate their cash out of altcoins.
Polkadot price bears risk of nosediving if sentiment takes another cut
Polkadot price sees investor sentiment
wobble again.Since last week, traders are bracing for another brief negative market shock in the altcoin space.The reason this time is not because of FTX or a stablecoin collapsing but an important payment service provider pulling out of cryptocurrencies.With that service provider folding up its tent and leaving the crypto industry under rumors of bankruptcy, money transfers could become very uncertain, with fund transfers unguaranteed of ever arriving at the right crypto-exchange or portfolio company.
DOT, meanwhile, has been trying to break out of a
bearish triangle, while the Silvergate news is not helping at all.
Expect another squeeze to the downside with a test and break of $5.74.That opens the road for another sell-off toward $5.31 with bulls ready to start buying into the price action as the Relative Strength Index (RSI) will have deepened into oversold territory.
DOT/USD 4H-chart
Should some tailwinds emerge with
another service provider stepping up to fill the gap that Silvergate left, a quick test back at the red descending trend line could be granted.A breakout trade would see some follow-through toward first $6.10 near the 200-day Simple Moving Average.A pivotal level higher at $6.23 could be in reach for bulls but looks rather unlikely due to the current narrative.
Information on these pages contains forward-looking statements that involve risks and uncertainties.
Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.
All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Cardano Price Prediction: ADA to shed 10% as more crypto turmoil unfolds
Cardano (ADA) price is under pressure as the crypto community sees one of the biggest and leading payment services in the sector back out.The Silvergate Capital situation looks to be the next big failure after the FTX meltdown and Terra’s LUNA collapse.
More Cardano News
Terra Luna Classic token burn sees massive spike, will LUNC price begin its recovery soon?
Terra Luna Classic (LUNC) witnessed a massive spike in its token burn with the contribution of the Cremation Coin project.The project burned a total of 51.7 million LUNC tokens, one of the largest burn initiatives till date.
More Terra News
Making a case for 28% crash in Fantom price
Fantom (FTM) price has been trading with a bearish bias since early February, recording lower highs and lower lows as the price consolidated within a descending parallel channel.
More Cryptocurrencies News
Three reasons why Ripple price buckle under pressure and crash 20% soon
Ripple (XRP) price sees markets gearing up for some massive risk events on the economic calendar.One could even say that bulls have dropped the ball and did not use the quiet window of opportunity last week to stretch that rally toward $0.42 yet again.
More Ripple News
Bitcoin: What’s next for BTC after $65 million worth liquidations?
Bitcoin (BTC) price edges closer to the lower limit of its bullish structure after Thursday’s market sell-off.
This move has also caused many altcoin traders to be caught off guard leading to $65 million in liquidations.Regardless, this is a time for investors to exercise caution as BTC scrambles to find its footing.
Read full analysis.