Polkadot Loses Ground and Is Aiming for the $5.00 Support

Polkadot (DOT) Price Long-term Trend: Bearish

Polkadot’s (DOT) price slips below the moving average lines and is aiming for the $5.00 support. The cryptocurrency price fell below the 50-day SMA, retested, and continued its downward trend. The cryptocurrency’s destination is indicated by its price. On December 9, the DOT price corrected higher, and the retraced candle body approached the 61.8% Fibonacci retracement line.

The retracement predicts that Polkadot will fall to the low of the 1.618 Fibonacci extension, or $4.96. Meanwhile, Polkadot has slumped to a low of $6.97 as of the time of writing.

Technical indicators:  

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

Polkadot Indicator Analysis

Following the recent slump, the price bars have dropped below the moving average lines. On December 20, a long candlestick tail points to the $6.00 support. This indicates heavy buying pressure above the $6.00 support. The altcoin is consolidating above the $6.00 support as Doji candlesticks appear.

General Outlook for Polkadot (DOT)

On the 4-hour chart, Polkadot drops above the $6.00 support and is aiming for the $5.00 support. The $6.00 support is the November 17 breakthrough level. On the 4-hour chart, Polkadot is trading above the $6.00 support level but below the 21-day SMA resistance level. Following its rejection, the cryptocurrency price has been oscillating below the 21-day SMA. The crypto signal is negative as the altcoin slips into the bearish trend zone.

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