Polkadot Signals a Probable Drop as It Faces Rejection at $5.70

Polkadot (DOT) Long-Term Analysis: Bearish
Polkadot (DOT) is in an upward correction as it faces rejection at $5.70.DOT price is currently drifting in and out of the moving average lines. However, it is currently trading below the 50-day line SMA and above the 21-day line SMA. The barrier at $5.70 is limiting the upward movement. A break over the resistance will propel the altcoin above the 50-day SMA. In this vein, if buyers maintain their bullish momentum above the 50-day simple moving average (SMA), the DOT price will soar to its all-time high of $7.41. If it fails to breach the 21-day line SMA, the cryptocurrency will fall below it. If the altcoin falls below the 21-day SMA, it will reach a low of $5.07.

Polkadot (DOT) Indicator Analysis
For period 14, the DOT price is at level 49 on the Relative Strength Index. It means that supply and demand are in equilibrium. Buyers are pushing the altcoin into the positive trend zone. The cryptocurrency’s price is currently located between the moving averages lines, indicating that the coin may move in a range. Polkadot has a bullish momentum over the daily Stochastic threshold of 70.

Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4


What Is the Next Direction for Polkadot (DOT)?
Polkadot has been trading sideways between $5.34 and $6.17 as it faces rejection at $5.70.Once the range-bound levels are broken, the altcoin will trend. The upward trend is stifled at $5.70. The altcoin is currently trading in an overbought zone, signaling a probable drop.

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