Will Polkadot [DOT] be subjected to sharp sell-off coming week

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin [BTC] fell by nearly 7% in recent hours of trading and had a bearish short-term outlook yet again. Many altcoins also followed and posted double-digit percentage losses over the previous day of trading alone.

Polkadot [DOT] was one of these coins. The coin was able to climb to the $7.7 mark on the back of steady demand. However, the buyers quickly turned into sellers as fear gripped the market yet again.

Source: DOT/USDT on TradingView

Polkadot has traded within the $7.7 and $6.9 area for most of the past two weeks. The Volumpe Profile Visible Range tool showed the Point of Control to lie at $7.25. This was the point at which the most trading volume was witnessed over the visible range. It marked a significant level of support, one that DOT smashed past the previous day.

The Value Area Low (VAL) and High lay at $7.03 and $7.64. At the time of writing, the price was beneath the VAL. The VAL represented a decent buying opportunity, but the dip beneath $7 meant that long positions might be unsafe.

A revisit to the $7 and $7.3 could occur as the price searches for liquidity. However, the $7.25-$7.3 belt would likely pose far too much resistance for DOT to be able to break past on its first couple of tries.

Source: DOT/USDT on TradingView

The Relative Strength Index (RSI) dropped from 60 to 22 over the course of the previous day’s trading. The Moving Average Convergence Divergence (MACD) also saw a sharp plunge beneath the zero line.

It was pretty straightforward that bearish momentum was dominant in recent hours. But can a relief rally be expected for DOT?

The Accumulation/Distribution (A/D)