Polkadot (DOT) Is in the Overbought Region, Faces Rejection at $34

Azeez Mustapha
4 September 2021 | Updated: 4 September 2021

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

Polkadot (DOT) Price Long-term Trend: Bullish
Polkadot (DOT) has rallied to $34 resistance zone but could not sustain `above it. On September 1, buyers retested the resistance level buy were repelled. For the past three days, DOT price has been struggling below the resistance level. Further upward move is unlikely as Polkadot reaches the overbought region. Meanwhile, on August 21 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the DOT price will rise but reverse to1.272 Fibonacci extension or level $34.10.

DOT/USD – Daily Chart

Daily Chart Indicators Reading:
DOT price is at level 71 of the Relative Strength Index period 14. The altcoin has reached the overbought region of the market. The DOT price is above the 80% range of the daily stochastic. Also, the stochastic has indicated an overbought condition of the coin. The 21-day and 50-day SMAs are sloping upward indicating the trend.

Polkadot (DOT) Medium-term Trend: Bullish
On the 4-hour chart, Polkadot has resumed upward move. Buyers broke the resistance at $32.Meanwhile, on the August 31 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that DOT will rise to level 1.272 Fibonacci extension or level $33.88.

DOT/USD – Daily Chart

4-hour Chart Indicators Reading
Polkadot is above the 80% range of the daily stochastic. The crypto is trading in the overbought region of the market. The crypto is in a bullish momentum. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Polkadot (DOT)
DOT/USD has resumed upward move. The uptrend is facing rejection at the 34 resistance level. The market is expected to fall as sellers emerge in the overbought region . According to the Relative Strength Index, DOT price has no room to rally on the upside .


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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.