After strong resistance at the high of $23, the price of Polkadot (DOT) has fallen into the bearish trend zone. Over the last four days, buyers have been trying hard to break the recent high, but have been rejected.
The cryptocurrency fell to a low of $19.47 as bulls bought the dips. Today, DOT is falling again after a small correction, but is trading at $20.56 at the time of writing.
The altcoin is above the 50-day line SMA, but has fallen below the 21-day line SMA, indicating that the cryptocurrency is back in a trading range. If the bears break below the 50-day line SMA, the DOT price will fall to a low of $18. Similarly, the altcoin will rise if the price breaks above the 21-day line SMA. Meanwhile, DOT/USD will continue to fluctuate if the moving average lines remain unbroken.
Polkadot indicator analysis
The DOT price has fallen to the 46 level of the Relative Strength Index for the period 14. The market has reached the downtrend zone and is below the centre line 50. The altcoin is capable of further downward movement. DOT price is between the moving averages, which indicate that the price will fluctuate in a range. The cryptocurrency is below the 25% range of the daily stochastic. Polkadot 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?
Polkadot is in a downward movement as the price has fallen below the moving averages. Meanwhile, on April 4, the downtrend has seen a retreating candlestick testing the 50% Fibonacci retracement level. The retracement suggests that DOT will fall to the 2.0 Fibonacci Extension level or $20.
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-19-move/