Polkadot (DOT) Is Range Bound Between $28 and $40, a Breakout or Breakdown Is Imminent

Polkadot (DOT) Is Range Bound Between $28 and $40, a Breakout or Breakdown Is Imminent

Key Resistance Levels: $40, $42, $44
Key Support Levels: $30,$28,$26

Polkadot (DOT) Price Long-term Trend: Ranging
For the past month, DOT has been in range-bound movement because of rejection at the recent high. The cryptocurrency is facing rejection at the $40 high. The crypto is fluctuating between $28 and $40. DOT will resume an uptrend if the $40 overhead resistance is breached. Conversely, if the bears break the $28 support, the market will decline to $16 low. Meanwhile, the coin is likely to rise, if the crypto’s price is sustained above the moving averages.

DOT – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the previous upward. Dot price may rise as it is above the SMAs. DOT is at level 54 of the Relative Strength Index period 14. This indicates that the pair is in the uptrend zone and it is capable of rising on the upside.

Polkadot (DOT) Medium-term Trend: Ranging
On the 4-hour chart, the altcoin has resumed a range bound movement between $32 and $38. Since February 20, the price has been fluctuating between the range-bound level. A range-bound trader can initiate a short order at the resistance level and exit near the support. Similarly, a long order can be initiated at the support, while you exit close to the résistance zone. Presently, the price is in the middle of the chart.

DOT – 4 Hour Chart

4-hour Chart Indicators Reading
The altcoin is below the 80% range of the daily stochastic. It indicates that the pair is in a bearish momentum. The SMAs are sloping horizontally indicating the sideways trend.

General Outlook for Polkadot (DOT)
Polkadot (DOT) is yet a trend as crypto continues its range-bound movement. The coin may soon encounter a price breakout or breakdown. The bulls will be on advantage if the price is sustained above the moving averages.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.