The price of Polkadot (DOT) is in a downtrend, falling to the low of $5.98 on September 21.
Long-term analysis of the Polkadot price: bearish
Since September 21, the cryptocurrency has been in an upward correction. The current support at $5.98 is the historical price level from July 13. The current support has held for the last two months. Today the altcoin is retesting the 21-day line SMA.
Nevertheless, on September 6, the price of DOT moved between $6.00 and $8.00. Moreover, the upward movements are limited below the moving average lines. If buyers hold the price above the moving average lines or the $8.00 high, the DOT price will rally to the upper resistance at $9.64. Conversely, the altcoin will continue its movement between the $6.00 and $8.00 price levels if it fails to break through the $8.00 resistance.
Polkadot Indicator Analysis
Polkadot is at level 42 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 average lines, indicating a further decline. The polkadot is above the 70% area of the daily stochastic. This indicates that the altcoin is in a bullish momentum.
Technical Indicators
Key resistance zones: $10, $12, $14
What is the next direction for Polkadot?
Polkadot has resumed a sideways movement after the recent downtrend. Meanwhile, on the downtrend from September 22, a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall but reverse at the Fibonacci level of 1.272 or $5.80.
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.
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