Polkadot Trades in a Tight Range but Finds Support above $8
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Polkadot (DOT) Long-Term Analysis: Bearish
Polkadot’s (DOT) price is in downward correction but finds support above $8. On May 30, the bulls broke above the 21-day line SMA but were repelled at the $10 high. Further upward movement of the coin has been restricted by the 21-day line SMA. Today, the cryptocurrency is consolidating above the $8.00 support. The price movement is slow because of the presence of small body indecisive candlesticks called Doji. On the upside, if the coin rebounds above the $8.00 support, the DOT price will break the 21-day line SMA and rally to the 50-day line SMA. On the downside, if the bears break below the current support at $8.00, Polkadot will decline to the previous low at $7.18.
Polkadot (DOT) Indicator Analysis
DOT price is at level 41 of the Relative Strength Index for period 14. It is in the bearish trend zone and may further decline if the bears break below the $8 support. The crypto’s price is now below the moving averages indicating a further decline.DOT is above the 25% range of the daily stochastic. The bullish momentum has been unstable. The 21-day line SMA and the 50-day line SMA are sloping southward indicating the downtrend.
Technical indicators:
Major Resistance Levels – $48, $52, $56
Major Support Levels – $32, $28, $24
What Is the Next Direction for Polkadot (DOT)?
Polkadot has fallen to the bottom of the chart as it finds support above $8. There is a likelihood of a further downward move as the altcoin as it consolidates in a tight range. Meanwhile, on May 11 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that DOT price will fall to level 1.618 Fibonacci extension or level $2.62.
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