Polkadot Struggles Below $7.40 as It May Further Decline
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Polkadot (DOT) Long-Term Analysis: Bearish
Polkadot’s (DOT) price is in a downward correction but it may further decline to the dowside . A break above the 21-day line SMA will propel Polkadot to rise to the previous highs of $10 and $12. Today, the bulls are retesting the 21-day line SMA to break it. In other words, the current bullish move is facing resistance at a high of $7.40. Nonetheless, if the DOT price faces rejection at $7.40, the altcoin will decline to the low of $6.40. The cryptocurrency will further decline to $5.50 low if the bears break below the current support.
Polkadot (DOT) Indicator Analysis
Polkadot is at level 44 of the Relative Strength Index for period 14. It is in the downtrend zone and capable of further decline. The crypto’s price is below the moving averages indicating a further decline. DOT is below the 40% range of the daily stochastic. The market is in a bearish momentum.
Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4
What Is the Next Direction for Polkadot (DOT)?
Polkadot faces rejection at the 21-day line SMA as it may further decline. Meanwhile, on May 11 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that DOT price will fall to level 1.272 Fibonacci extension or level $5.61.
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