Polkadot Is in a Downward Correction, May Revisit the $16 Low

Updated:

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

Polkadot (DOT) Price Long-term Trend: Bearish
Polkadot’s (DOT) price has fallen below the moving averages but may revisit the $16 low. The altcoin has resumed a downward correction between the levels of $16 and $20. In the previous price action, buyers could not break the resistance at $23 and the 50-line moving average. Consequently, the downtrend resumed. After the recent price slump, DOT/USD is trading at $18.42 as of press time. Nevertheless, if the DOT price rebounds above the current support, the resistance levels of $20 and $23 are likely to be broken. The altcoin will rally above the moving averages which will compel the altcoin to resume upside momentum. Nonetheless, the downward correction will continue where the bullish scenario is invalidated.

Polkadot Is in a Downward Correction, May Revisit the $16 Low
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
The cryptocurrency is below the moving averages indicating a possible downward move. The crypto is at level 40 of the Relative Strength Index for period 14. The altcoin is trading in the bearish trend zone and below the centerline 50. It is above the 25% area of the daily stochastic. The market is in the bullish momentum.

Polkadot (DOT) Medium-term Trend: Bearish
Polkadot has been declining after the rejection at the $23 high. Meanwhile, on February 8 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement suggests that DOT will fall to level 2.618 Fibonacci extension or $18.35. From the price action, DOT is consolidating above the 2.618 Fibonacci extension.

 Polkadot Is in a Downward Correction, May Revisit the $16 Low
DOT/USD – 4 hour Chart

4-hour Chart Indicators Reading
DOT price is above the 25% area of the daily stochastic. The altcoin is in bullish momentum. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Polkadot (DOT)
DOT/USD is in downward correction but may revisit the $16 low. The downtrend has eased as the altcoin fell to the oversold region of the market. Buyers will emerge in the oversold region to push the altcoin upward.

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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.