Polkadot Is In A Range As It Faces Additional Restraint At $7.50

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

Polkadot (DOT) Price Long-term Trend: Bearish
Polkadot’s (DOT) drop between the moving average lines as it faces additional restraint at $7.50. The altcoin rose above the 50-day SMA yesterday, but it remained below the 21-day SMA. The altcoin is now selling for $7.32 as of this writing.

There is some early resistance to the upward trend at the $7.50 high. If buyers overcome the 21-day SMA as well as the initial resistance, Polkadot will continue to move higher. The altcoin will return to its $9.58 peak.

On the other hand, if the bears break below the 50-day SMA support, the altcoin will drop even more. The altcoin will drop even more, reaching a low of $5.30. DOT/USD is still caught in between the moving average lines in the interim.

Daily Chart Indicators Reading:
In general, the moving average lines constrain the price bars. When the moving average lines are crossed, the altcoin will trend. The price bars on the 4-hour chart are in between the moving average lines, which are sliding southward.

General Outlook for Polkadot (DOT)
Polkadot has dropped into the oversold area of the market as it faces additional restraint at $7.50. The cryptocurrency dropped as low as $6.52 on January 8, which is equivalent to the historical price of December 11. The altcoin continues to rise above the historical price level set on December 11.

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