Polkadot Hovers above $22 Support, May Resume Upside Momentum

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

Polkadot (DOT) Price Long-term Trend: Bearish
Polkadot’s (DOT) price is in a downward move but it may resume upside momentum. The altcoin has declined to $22 low. Since January 17, the cryptocurrency has been in a downward move after the rejection at the $28 resistance. Today, the DOT price is retesting the current support at $22. The $22 support is the previous low of January 10, price fall. If the bears fail to break the $22 low, it is assumed that the downtrend is over. The upward move will resume if the support holds at $22. Besides, Polkadot has reached the oversold region of the market. The selling pressure is likely to reach bearish exhaustion.

Polkadot Hovers above $22 Support, May Resume Uptrend
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
The altcoin price is at level 36 of the Relative Strength Index for period 14. DOT price is approaching the oversold region of the market. The crypto’s price bars are below the moving averages which make it prone to fall. The 21-day SMA and the 50-day SMA are sloping sloping southward indicating the downtrend.

Polkadot (DOT) Medium-term Trend: Bullish
Polkadot has resumed downtrend as price breaks below the current support. Meanwhile, on January 19 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that DOT price will fall to level 1.272 Fibonacci extensions or $22.40.

Polkadot Hovers above $22 Support, May Resume Uptrend
DOT/USD – 4 Hour Chart

4-hour Chart Indicators Reading
Polkadot is below the 20% area of the daily stochastic. The market has reached the oversold region. Buyers are expected to emerge in the oversold region to push prices upward. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The altcoin has a bearish crossover. That is, the 21-day SMA crosses below the 50-day SMA which indicates a sell order.

General Outlook for Polkadot (DOT)
Today, DOT/USD has declined further to $22 low but it may resume upside momentum. It appears the market has fallen to the oversold region. The Fibonacci tool has indicated that the altcoin can possible reverse at level $22.

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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.