Polkadot (DOT) is trading above the moving averages as the altcoin has risen to a high of $21.48. The cryptocurrency is out of the downward correction if the current bullish momentum above the moving averages continues.
The bulls have broken above the $20 resistance while the altcoin is completing a small retracement. Should the bulls overcome the resistance at $23, a rise to $27 is likely. On the other hand, if Polkadot fails at the high at $23, DOT/USD will fall above the moving averages. However, the market will resume its uptrend if DOT holds above the moving averages. Nevertheless, the altcoin risks another decline if the price falls below the moving averages. The market will continue to fall to the low of $16. DOT/USD is trading at $20.82 at the time of writing.
Polkadot indicator analysis
DOT price has risen to level 63 on the Relative Strength Index for period 14. The cryptocurrency’s price is above the moving averages that have pushed the altcoin higher. The altcoin is below the 80% range of the daily stochastic. DOT has reached the overbought area of the market. The stochastic bands are moving below and above the 80% range. The 50-day line SMA and the 21-day line SMA are sloping upwards, indicating an uptrend.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
DOT/USD is in an uptrend as bulls are breaking through resistance levels. DOT is in a gentle uptrend. It is forming a series of higher highs and higher lows indicating the uptrend. A bullish trend line indicates the support levels of the prices. The uptrend is terminated when the bears break below the trend line.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.
Source: https://coinidol.com/polkadot-23-high/