Polkadot Holds above $6.40 as Bulls Buy the Dips

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

Polkadot (DOT) Price Long-term Trend: Bullish
Polkadot (DOT) has dropped above the moving average line to break through the 21-day SMA as bulls buy the dips. The bears retested the 21-day SMA on December 18, but the bulls purchased the dips. The gloomy trend has continued as sellers pushed the price lower.

If the bears breach the 21-day SMA and the bearish momentum continues, selling pressure will begin. First, Polkadot will fall above the 50-day moving average (or $5.70 low). The altcoin will continue to trade sideways above the moving average lines but below the $7.68 resistance level if the bearish momentum is stopped above the 21-day SMA.

Meanwhile, at the time of writing, DOT/USD is valued at $6.78.

Daily Chart Indicators Reading:
The price bars have remained above the 21-day SMA after two retests. Buyers continue to defend the 21-day SMA support. The 21-day and 50-day moving averages are trending upward, with the 21-day SMA providing support.

The price bars on the 4-hour chart are below the moving average lines, indicating a likely fall.

General Outlook for Polkadot (DOT)
Polkadot declines above the 21-day SMA support as bulls buy the dips. Since December 9, the altcoin’s price has been between S6.40 and S7.60. The bears have retested the lower price range three times but have yet to break through.

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