Today Polkadot (DOT) fell below the moving averages as the altcoin continues its downward correction. On February 28, the altcoin rallied to a high of $19, but the bullish momentum could not be sustained.
Currently, Polkadot is falling to the previous low of $16. The market has been fluctuating between $16 and $20 since the January 22 plunge. Buyers have been defending this key support of $16 since January 22. DOT has retreated to the low of $17. On the upside, a rally above the moving averages is expected if the price rises above the current support, but the altcoin will face a strong resistance at $22.
Polkadot indicator analysis
The cryptocurrency is at level 43 of the Relative Strength Index for the period 14. DOT is in the downward zone as the price falls below the moving averages. The cryptocurrency’s price is now completely below the moving averages, which makes the altcoin vulnerable to a decline. The Polkadot is below the 80% area of the daily stochastic. This means that the market is in a bearish momentum.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
DOT/USD has resumed its downward movement after rejecting the high at $19. Polkadot has fallen below the moving averages to resume selling pressure. Meanwhile, the downtrend from January 24 has shown a retraced candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that DOT will fall to the 1.272 Fibonacci extension level or the $11.57 level. The price action shows that the altcoin consolidated above $16 after testing the low of $14.07.
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-support-16/