Polkadot Breaks above $20 High as the Altcoin Reaches Overbought Region

Key Resistance Levels: $60, $62, $64
Key Support Levels: $40,$38,$36

Polkadot (DOT) Price Long-term Trend: Bearish
Polkadot’s (DOT) price is in downward correction as the altcoin reaches overbought region. Today, the bulls are retesting the $20 resistance level to break above it. On February 2, the bulls failed to breach the resistance level as the market declined to $18 low. Today, if buyers breach the resistance at $20, the market will rally to $30. On the downside, the bears have been repelled at the lower price range as bulls defend the current support level.

Daily Chart Indicators Reading:
The market is at level 40 of the Relative Strength Index for period 14. Polkadot is in a downtrend zone and below the centerline 50. The crypto is capable of falling to the downside. The crypto’s price is below the moving averages which indicate further upward moves.


Polkadot (DOT) Medium-term Trend: Bearish
On the 4 hour chart, Polkadot is fluctuating between $16 and $20 price levels. The bears have retested the lower price range on three occasions to break below it. The bulls have failed at the resistance twice to break above it. The altcoin will trend when the range-bound levels are breached.

4-hour Chart Indicators Reading
Polkadot is above the 40% area of the daily stochastic. The market has resumed bullish momentum. The market is in a bullish momentum. The altcoin is also approaching the overbought region of the market. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend.

General Outlook for Polkadot (DOT)
DOT/USD is in an upward move as the altcoin reaches overbought region. The crypto will resume downward correction if buyers fail to break the recent high. On February 3, the altcoin fell to the oversold region. Buyers are likely to emerge in the oversold region and defend the current support at $16.



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