Polkadot’s Rising Trend Is Shaky as It Pauses above $8.00
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Polkadot (DOT) Long-Term Analysis: Bullish
Polkadot (DOT) is retracing as it pauses above $8.00. Today, the altcoin has dropped to a low of $8.28 and may decline further. On the downside, if DOT price retraces above the 21-day SMA, it will resume its bullish ascent. The cryptocurrency will soar once more, approaching the previous high of $9.58. However, the rising trend is shaky because the market has reached overbought territory.
Furthermore, if the price falls below the 21-day simple moving average, the slide would be accelerated. Meanwhile, DOT/USD is dropping slightly near the moving average lines.
Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4
Polkadot (DOT) Indicator Analysis
Polkadot’s price bars are above the moving average lines, indicating that the cryptocurrency may rise. However, the altcoin’s price will decline if it falls below the 21-day SMA. On the lower time frame, the price bars are below the moving average lines, indicating that the price will continue to fall.
What Is the Next Direction for Polkadot (DOT)?
On the 4-hour chart, Polkadot is declining below the moving average lines as it pauses above $8.00. On the 26th of December, the altcoin made an upward advance, and the candle body tested the 50% Fibonacci retracement level. This means that the market will continue to decline to the Fibonacci extension level of 2.0, or $7.32 low.
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