Polkadot Consolidates above $4.41 as It Reaches the Bottom Price Level
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Polkadot (DOT) Long-Term Analysis: Bearish
Since December 19, the Polkadot (DOT) price has remained above the low of $4.41 as the altcoin reaches the bottom price level. The current consolidation is due to the market reaching its bottom price level. The cryptocurrency asset’s value has dropped significantly from a high of $55 to a low of $4.41. Despite reaching the oversold area of the market, the altcoin has continued to fall. Polkadot, for example, was rejected again on December 16 at the $5.50 high or the 21-day line SMA. The altcoin fell to a low of $4.41 before beginning to consolidate above it. For the last three days, the altcoin has been fluctuating above it. Another downward movement is unlikely as it approaches the oversold area. The downward trend could reverse if the price rises above $4.00.
Polkadot (DOT) Indicator Analysis
For period 14, the DOT price is at level 30 on the Relative Strength Index. It demonstrates that the market’s oversold region has been reached. It’s unlikely that the selling pressure will increase. Further decline is also suggested because the price bars are below the moving average line. The southward sloping 21-day and 50-day line SMAs show a downtrend. The daily Stochastic indicates that Polkadot is oversold because it is trading below level 20.
Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4
What Is the Next Direction for Polkadot (DOT)?
Polkadot is currently trading above $4.41 as the altcoin reaches the bottom price level. The altcoin is swaying sideways above the current support. The price of the cryptocurrency will fall even further if the current support is broken, reaching a low of $4.00. In addition, the altcoin is trading at the chart’s bottom.
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