Polkadot Consolidates but Risks Falling below $5.50

Polkadot (DOT) Price Long-term Trend: Bearish

Polkadot’s (DOT) price declines below the moving average lines but risks falling below $5.50. The bearish trend broke below the 21-day SMA, resulting in a succession of lower highs and lows. On January 27, the DOT price dropped to a low of $5.50 before rising again. The rising movement has paused at the 21-day SMA. On the upside, if the coin price breaks above the moving average lines, the DOT price will resume its upward path.

It will return to the prior high of $8.00. On the downside, the altcoin is losing value as it faces rejection at the 21-day SMA. The bearish momentum could go as low as $5.13 or $5.00. Meanwhile, the altcoin has dropped to a low of $5.84 and is currently trading above $5.84.

Technical indicators:  

Key Resistance Levels: $10, $12, $14
Key Support Levels: $5, $3, $1

Polkadot Indicator Analysis 

The DOT price falls as it faces rejection at the 21-day SMA. The altcoin is trading modestly due to the presence of Doji candlesticks. The moving average lines are trending southward, indicating a downturn. DOT prices will fall as long as the price bars are below the moving average lines.

General Outlook for Polkadot (DOT)

Polkadot is trading inside a small range of $5.50 to $6.50 but risks falling below $5.50. The altcoin is losing value after twice reaching the $6.50 resistance level. On the downside, if the cryptocurrency retraces and maintains above the $5.50 support level, the DOT price will remain range-bound. If the current support is breached, selling pressure will persist until $5.00.

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