Polkadot Declines Marginally as It Continues to Make Lower Highs and Lower Lows
Polkadot (DOT) is in a downward correction as the cryptocurrency's price has a series of lower highs and lower lows. Today, DOT reaches a lower high and retests the 21-day line SMA.
On the upside, the bulls have not crossed the 21-day line SMA since April 11. In other words, the 21-day line SMA has put the brakes on further upward movement of the cryptocurrency. If Polkadot turns away from the 21-day line SMA, the altcoin will fall to the current support at $6.37. However, if the selling pressure continues, the altcoin will drop further to a low of $5.60. On the other hand, if the current support holds, the cryptocurrency will fluctuate between $6.37 and $7.25.
Polkadot indicator analysis
The altcoin is on the level 45 of the Relative Strength Index for the period 14. DOT price is in the downward zone and could fall further. The cryptocurrency is below the moving average lines, which indicates a further decline. DOT is above the 40% area of the daily stochastic. The market is in a bullish momentum. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.
Major Resistance Levels – $10 and $12
Major Support Levels – $6 and $4
What is the next direction for Polkadot?
Polkadot is in a downward movement. The cryptocurrency will decline every time it retests the 21-day moving average line. The altcoin risks a decline if it fails to break above the 21-day line SMA. 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 to 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.
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