Polkadot (DOT) is falling after rejecting the $5.25 resistance on the 21-day line SMA.
Polkadot price long-term analysis: bearish
Since December 19, the cryptocurrency has consolidated above the $4.40 support level. Selling pressure has eased as the altcoin consolidates above its current support level. If the bears break the $4.40 support level, Polkadot will fall to a low of $4.00. The downtrend could reverse if the price rises above $4.00. The market will resume its movement between $4.00 and $5.50, where the current support is located.
Polkadot indicator analysis
Since December 19, Polkadot has been at level 28 on the Relative Strength Index for period 14. The altcoin has been consolidating as it trades in the oversold region of the market. The price bars are below the moving average line, which makes it vulnerable to a decline. The 21-day and 50-day SMAs are pointing south, indicating a downtrend.
Technical indicators
Key resistance levels – $10 and $12
Key support levels – $6 and $4
What is the next direction for Polkadot?
Polkadot has fallen significantly and may continue to fall. On November 9, the downtrend and a candlestick tested the 61.8% Fibonacci retracement level. After the correction, DOT will fall to the 1.618 Fibonacci extension level or $4.00.
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-falls-significantly/