The price of Polkadot (DOT) is in a downward correction after the cryptocurrency fell to a low of $17. Since April 11, selling pressure has eased as bulls have bought the dips. Polkadot is in an upward correction to previous highs.
Polkadot (DOT) Price Long Term Analysis: Bearish
The current upside move is likely to meet resistance at the $19 high. The price of DOT will rally to the high of $23 if the bulls break through resistance at $19.
However, if the bulls fail to break the high of $23, the price of DOT will fall below the 21-day moving average. In other words, DOT/USD is trading below the 21-day line SMA and above the 50-day line SMA. The altcoin will have to stay in a trading range for a few more days. However, if the bulls fail to break the recent high, the bears will break below the $17 support. This will cause the altcoin to fall to the low of $14. Today Polkadot is trading and approaching resistance at $19.
Polkadot (DOT) Indicator Analysis
The price of DOT has fallen to the value 42 of the Relative Strength Index for the period 14. It is in the downtrend zone and can fall downwards. The price of the cryptocurrency is below the moving averages, which indicate a possible decline in the cryptocurrency. The cryptocurrency is above the 70% range of the daily stochastic. Polkadot is in a bullish momentum and approaching the overbought zone of the market.
Technical Indicators:
Key resistance levels – $52 and $56.
Important support levels – $28 and $24
What is the next direction for Polkadot (DOT)?
Polkadot is in a downtrend as the price consolidates above $17 support. The altcoin is rising to retest the initial resistance at $19. It will fall if it is rejected at the recent high. Meanwhile, the downtrend from April 11 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that DOT will fall to the Fibonacci extension level of 1.618 or $15.12.
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-struggles-selling-pressure/