Polkadot (DOT) is in a downtrend and has fallen to a low of $6.53. On June 25, the upward correction was staved off at the 21-day line SMA. This caused the altcoin to fall to the downside. The cryptocurrency was in a downward movement from the high of $8.36 to the low of $6.53.
Polkadot fell to the previous low of the June 18 price collapse. The current support was defended by the bulls. The bears have not yet broken the current support since June 18. If the bears break the support at $6.37 to the downside, the market will fall back to the low of $4.23. On the other hand, if the current support holds and the altcoin rallies, the DOT price will break above the moving averages and rise to $17. DOT/USD is trading at $6.73 at the time of writing.
Polkadot indicator analysis
The cryptocurrency is at level 36 of the Relative Strength Index for the period 14. It is in the downtrend zone and could fall further below the support of $6.37. DOT price bars are below the moving averages, indicating a further decline. DOT is below the 40% area of the daily stochastic. The market is in a bearish momentum.
Technical indicators:
Major Resistance Levels – $10 and $12
Major Support Levels – $6 and $4
What is the next direction for Polkadot?
Polkadot has fallen to the previous low of June 18. The altcoin risks a possible decline. Breaking the $6.37 support will increase selling pressure. Meanwhile, on May 11 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of 1.618 Fibonacci extension or the level of $2.68.
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-4-23-low/