The price of Polkadot (DOT) is in a downward correction as it faces rejection at the 21-day line SMA. Since April 11, buyers have failed to keep the price above the 21-day line SMA. The 21-day line SMA has proven to be a resistance line for the price bars.
If the resistance line is broken, Polkadot will rise to the previous highs of $10 and $12. However, if the price of DOT turns away from the 21-day line SMA, the altcoin will fall to a low of $6.40. The cryptocurrency will drop further to a low of $5.50 if the bears fall below the current support. Meanwhile, DOT/USD is trading at $6.97 at the time of writing.
Polkadot indicator analysis
The cryptocurrency is at level 43 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone and could fall further. The price bars are below the moving averages, which is responsible for the price slump. DOT is below the 25% 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 been in a sideways movement since May 12. The cryptocurrency has fallen to the low of $7.05. The 21-day line SMA has slowed down the uptrend. The altcoin is trading in a narrow range, which may cause the price to rise again or break down. Meanwhile, on May 11 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of the Fibonacci extension of 1.272 or the level of $5.61.
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-revisits-6-93/