The price of Polkadot (DOT) is trading in oversold territory and above $17 at the time of writing. The cryptocurrency’s price action is characterized and dominated by small, indecisive candlesticks known as doji and spinning tops.
The candlesticks indicate that buyers and sellers are indecisive about the direction of the market. For this reason, the cryptocurrency is likely to trade marginally. The price movement is likely to be insignificant due to the doji candlesticks. Moreover, there are candlesticks with long tails indicating the current support. The long tails indicate strong buying pressure at lower levels. This could cause the DOT/USD pair to remain in a trading range for a few more days.
Polkadot indicator analysis
The DOT price is at the level 30 of the Relative Strength Index for the period 14. The cryptocurrency has reached the oversold zone. The price movement is stagnant due to the range bound movement. Polkadot is below the 20% area of the daily stochastic. It is trading in the oversold region of the market. Stochastic bands are inclined horizontally, which indicates the price movement.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
The downtrend of DOT/USD has reached its bearish exhaustion. Polkadot has initiated a range-bound move. Meanwhile, the December 20 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the 1.272 Fibonacci extension level or $14.78.
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-range-bound-trend/