Polkadot (DOT/USD) has given back all of its 2023 gains, and is now at a new low for the year. With Jerome Powell set to deliver a potentially hawkish speech today, investors of the cryptocurrency are concerned as the technical analysis picture points to further downside.
A descending triangle is a bearish continuation pattern which suggests that the price action will continue in the same direction as the main trend – in this case, bearish. The pattern would be confirmed if the market travels a distance equal to the longest segment of the triangle, which points to almost 0.
It is important to take into consideration the bigger picture before buying cheap coins. Bulls are trapped, and the bias remains bearish, not bullish. Powell’s speech could be the catalyst for further drops in the DOT/USD pair.
The cryptocurrency market rallied at the start of the year following a bearish 2022, however not all coins managed to remain near their yearly highs. Investors should be wary of the potential downside of Polkadot as it may be the result of broader market movements.
