Polkadot Hovers above $7.00 Support as It Risks Further Decline


Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4

DOT/USD Long-term Trend: Bearish
Polkadot’s (DOT) price is in a downtrend as it hovers above $7.00 support. After the decline, buyers pushed the coin to the 50-day line SMA but were repelled. The cryptocurrency will further decline above the $7.03 support. On the August 20 price slump, Polkadot declined and found support above the $7.04 support. For the past week, the altcoin has been fluctuating above the current support but below the 50-day line SMA. On the upside, if the bulls break above the moving average lines, the altcoin will rise and revisit the $9.68 overhead resistance. Polkadot will further decline if the current support is breached. This implies that the crypto will further decline to the previous lows at $6.52 and $5.98 price levels.

Polkadot Hovers above $7.00 Support as It Risks Further Decline
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
The altcoin is at level 41 of the Relative Strength Index for period 14. DOT price is in a downtrend trend zone and may further decline. The price bars are still fluctuating below the moving average lines which will lead to further decline.

DOT/USD Medium-term bias: Bearish
On a weekly chart, the DOT price has fallen significantly to the downside. Today, the market is declining again after facing rejection at the 21-day line SMA. On a weekly chart, a retraced candle body tested the 78.6% Fibonacci retrenchment. The retracement suggests that DOT/USD will fall to level 1.272 Fibonacci extension or level $3.14. From the price action, the DOT price has fallen to the low of $7.47.

Polkadot Hovers above $7.00 Support as It Risks Further Decline
DOT/USD – Weekly Chart

4-hour Chart Indicators Reading
DOT price is below the 40% range of the daily stochastic. The market is in a bearish momentum. The 21-day line and 50-day line moving averages are sloping southward indicating the downtrend.

General Outlook for Polkadot
Polkadot is in a downward move as it hovers above $7.00 support. Presently, it is fluctuating above the current support. The altcoin will further decline to the low of  $5.98.

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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.