Polkadot remains in a strong downtrend. The bears pulled the price below the pennant formation and the Nov. 10 intraday low of $5.32 on Nov. 20. This indicates the resumption of the downtrend.


Buyers may attempt to start a recovery from the psychological level of $5 which could reach the breakdown level from the pennant. If bears flip this level into resistance, the prospects of a decline to $4.08 increase.

On the contrary, if buyers thrust the price above the 20-day EMA ($5.86), it will indicate aggressive buying at lower levels. That may trigger short covering from the aggressive bulls, clearing the path for a possible rally to $6.50.