Polkadot (DOT) Retraces From $30 High as Sellers Threaten to Short

Polkadot (DOT) Retraces From $30 High as Sellers Threaten to Short

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

Polkadot (DOT) Price Long-term Trend: Bearish
Today, DOT price is falling after rejection from the $32 high. In the previous price action, Polkadot plunged to $16 low and pulled back as bulls bought the dips. However, the uptrend was short-lived as DOT price faced resistance at $32.50. Buyers could not sustain the bullish momentum above the recent high. Meanwhile, on May 19 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that DOT price will fall to level 1.618 Fibonacci extension .

DOT/USD – Daily Chart

Daily Chart Indicators Reading:
Polkadot has fallen to level 40 of the Relative Strength Index period 14. It indicates that the coin is in the downtrend zone below the centerline 50. The crypto’s price has broken below the moving averages which suggests that the coin is in the bearish trend zone and capable of falling. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend.

Polkadot (DOT) Medium-term Trend: Bearish
On the 4 hour chart, the altcoin has been in a sideways trend since February. On May 20, the crypto plunged to $21 low as bulls bought the dips. The price corrected upward but the uptrend is facing resistance at the high of $30. Meanwhile, on May 19 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that DOT will fall to level 2.0 Fibonacci extension. From the price action, the altcoin is retracing after the rejection from the recent high.

DOT/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The altcoin is above the 40% range of the daily stochastic. It indicates that the market is in a bullish momentum. This is contrary to the price action which is retracing from the recent high. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Polkadot (DOT)
Polkadot (DOT) price is in a downward correction. The altcoin is facing rejection from the recent high. In the meantime, the crypto’s price is fluctuating between $16 and $30. The altcoin will trend if the levels are breached.

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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.