Polkadot (DOT) is in a downtrend, but is fluctuating above the $6.80 support. Since August 28, the cryptocurrency has been fluctuating between $6.80 and $8.00 price levels. On August 24, buyers were rejected when they tried to break the $8.00 high.
Today, the altcoin is rising to reach the $8.00 resistance level again. If the buyers break through the $8.00 resistance, Polkadot will rise upwards to reach the $9.68 resistance again. Conversely, if the altcoin loses the support at $6.80, the selling pressure will increase again. Polkadot will then continue to fall back to the previous lows at $6.52 and $5.98. In the meantime, Polkadot is trading at $7.29 at the time of writing.
Polkadot indicator analysis
Polkadot is at level 44 of the Relative Strength Index for period 14. The altcoin is in a downtrend zone despite the upward correction. DOT price bars are below the moving average lines, indicating further decline. Altcoin price is above the 40% area of the daily stochastic. The market is in a bullish momentum.
Technical Indicators
Key Resistance Zones: $10, $12, $14
Key Support Zones: $8.00, $6.00, $4.00
What is the next direction for Polkadot?
Polkadot is in a downward correction as buyers defend current support. The upside moves are rejected at the recent high. Meanwhile, a retraced candlestick tested the 78.6% Fibonacci retracement level on August 21. The retracement suggests that DOT/USD will fall to the level of 1.272 Fibonacci extension or the level of $6.33.
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 in funds.
Source: https://coinidol.com/polkadot-battles-resistance-8-00/