The Polkadot (DOT) rate is approaching an important support, which can serve as a springboard for a rebound and signal the end of the current correction.
Trading Range
After an impressive drawdown since September 1, on the 5th, the DOT touched a low of $3.53, from where it began to grow. The rise continued until September 14, when the quotes reached a maximum of $5.57. Here, the token formed a local top, broke through the ascending support line and has been declining ever since.
As a result, the $5.65 level retained its resistance status. At the time of writing the analysis, the price was around $4, approaching the support of $3.80.
DOT chart from TradingView
Technical indicators are gradually beginning to signal an improvement in the picture, but so far they do not show signs of a bullish reversal. The MACD is rising, but has not yet entered positive territory, and the RSI is in the oversold zone, but does not signal a bullish divergence.
DOT chart from TradingView
Wave analysis
Since September 1, DOT has been forming a corrective figure A-B-C (black color on the chart below), currently being at the stage of wave C.
The two most likely levels to complete the correction are at $3.52 and $2.24. These levels were revealed due to the projection of the length of wave A to the top of wave B (0.618 and 1).
DOT chart from TradingView
Short-term dynamics show that wave C is realized inside the bearish impulse (red color on the chart). Which target will be reached depends on the length of wave 5, but the first target of $3.52 seems the most likely.
DOT/BTC pair
Cryptocurrency Trader @TheEurosniper he shared the DOT chart on Twitter and noted that the pair is likely to fall towards the 32,500 satoshi level.
The dynamics of the DOT/BTC pair is similar to the behavior of the DOT in a pair with the dollar. The price reached the first support of 38,500 satoshi, the loss of which can send quotes to the area of 32,500 satoshi, which coincides with the target indicated in the tweet.
So, the DOT is likely to complete another short-term decline before resuming its upward movement.
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