Polkadot Continues to Drop at the $7.30 Rejection Rate

Polkadot (DOT) Long-Term Analysis: Bearish 
Polkadot (DOT) is still trading between $6.20 and $7.30 but continues to drop at the $7.30 rejection rate. The bulls have twice retested and broken above the 21-day SMA but were unable to extend their bullish momentum to the 50-day SMA high. The altcoin was rejected at the $7.30 resistance level. The negative momentum is approaching the current support level of $6.20.

DOT/USD is currently trading below the 21-day SMA, having fallen as low as $6.48. The crypto’s price is hovering above its current support. If bearish momentum continues beyond $6.20, the DOT price might fall to lows of $6.05 and $5.67. Meanwhile, the currency is currently valued at $6.55.

Technical indicators:  
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4
 
Polkadot (DOT) Indicator Analysis 
Polkadot was first caught between two moving average lines before being rejected by resistance at $7.30. As price bars fall below the moving average lines, the 21-day SMA serves as resistance. Polkadot will resume a positive trend if buyers maintain the price above the 21-day and 50-day SMA moving average lines.
 
What Is the Next Direction for Polkadot (DOT)?
Polkadot experiences further resistance but continues to drop at the $7.30 rejection rate. On the May 9 price drop, DOT made an upward reversal as a retraced candle body tested the 61.8% Fibonacci level. The pullback indicates that the DOT price will fall even further to the Fibonacci extension level of 1.618 or $6.38. Meanwhile, the crypto signal is still negative as the altcoin falls to the bearish trend zone.

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