The price of Polkadot (DOT) turned from the recent high, but found support above the breakout level of $20. Earlier, bulls broke through $20 resistance including the 21-day moving average line.
However, the bullish momentum failed to break through the 50-day moving average. Had the bulls broken through the 50-day moving average, the market would have risen to $30. Since the bulls failed to break the recent high, the altcoin has now found support above the $20 breakout level.
Currently, Polkadot is likely to be forced to move sideways as long as the cryptocurrency price remains above the 21-day moving average and below the 50-day moving average. Today, DOT/USD is trading at $20.54 as of press time. There is a bullish candle indicating a possible upward movement of the cryptocurrency.
Polkadot indicator analysis
The DOT price is between the moving averages, which indicates that the altcoin is likely to remain in a fluctuation range for a few more days. DOT will show a trend when the fluctuation range is broken. The cryptocurrency is at level 45 of the Relative Strength Index for the period 14. The cryptocurrency is in the downtrend zone and below the midline 50. Polkadot is below the 20% area of the daily stochastic. The market has fallen into the oversold area of the market. Buyers will emerge to push prices higher.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
On the 4-hour chart, Polkadot is in a gentle uptrend. The cryptocurrency price has been hitting higher and higher highs and lows. After rejecting the high at $23, the bears broke below the moving averages. Today, the altcoin is consolidating above the $20 support.
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-resistance-20/