Polkadot (DOT) Reaches Oversold Region as Buyers Are Likely to Emerge

Polkadot (DOT) Reaches Oversold Region as Buyers Are Likely to Emerge

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

Polkadot (DOT) Price Long-term Trend: Bearish
Since June 14, Polkadot (DOT) has been falling after the rejection at $29. The selling pressure has broken below the moving averages which suggests a further downward movement of prices. The current price fall was the failure of buyers to break the previous lower highs. For the past five days, DOT price was making a series of lower highs and lower lows. The selling pressure resumes as bulls fail to break the lower high $26 high. The current downtrend is likely to extend to the low at $20.

DOT/USD – Daily Chart

Daily Chart Indicators Reading:
Polkadot is at level 43 of the Relative Strength Index period 14. The crypto is in the bearish trend zone and below the centerline 50. The 21-day and the 50-day SMA are sloping southward indicating the downtrend. The crypto’s price has broken below the moving averages which suggests a further decline.

Polkadot (DOT) Medium-term Trend: Bearish
On the 4 hour chart, the altcoin is in a downward move. The selling pressure has been confirmed as price breaks below the moving averages. Meanwhile, on June 4 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that DOT will fall to level 1.618 Fibonacci extension or level $20.91.

DOT/USD -4 Hour Chart

4-hour Chart Indicators Reading
DOT price has fallen below the 20% range of the daily stochastic. It indicates that price has fallen to the oversold region. It means that selling pressure has reached bearish exhaustion. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Polkadot (DOT)
Polkadot’s (DOT) price is falling as the altcoin revisits the previous lows. DOT price has fallen to the oversold region as buyers are likely to emerge.

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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.