Polkadot Consolidates Above $26 Support as It Reaches Bearish Exhaustion

Polkadot (DOT) Long-Term Analysis: Bearish
Polkadot’s (DOT) price is in a downward correction as reaches bearish exhaustion. DOT price made upward correction twice but was repelled at the highs of $32 and $30 price levels. The cryptocurrency has fallen below the moving averages. The implication is that the altcoin will revisit the previous low at level $23. However, the downtrend will resume if price breaks below the $23 support level. Today, the DOT price has fallen and reached the previous low at $26. The $26 support is a historical price level of September. In the previous price action, the support was holding as the altcoin resumed a fresh uptrend.

Polkadot (DOT) Indicator Analysis
DOT price has fallen to level 42 of the Relative Strength Index for period 14. The altcoin has fallen to the downtrend zone and is capable of a further downward move. The crypto’s price bars are below the moving averages indicating a possible fall of the coin. DOT price is below the 20% range of the daily stochastic. The market has reached the oversold region. The selling pressure is likely to subside or end.

Technical indicators:  

Major Resistance Levels – $48, $52, $56

Major Support Levels – $32, $28, $24

What Is the Next Direction for Polkadot (DOT)?
On the 4 –hour chart, the selling pressure has subsided as it reaches bearish exhaustion. Meanwhile, on December 30 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that DOT price will fall to level 1.272 Fibonacci extension or $24.48. From the price action, the market is consolidating above the current support.

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