Polkadot Reaches Bearish Exhaustion as It Hovers above $4.41

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

Polkadot (DOT) Price Long-term Trend: Bearish
The price of Polkadot (DOT) has hit a low of $4.41 on December 19 as it hovers above $4.41. The value of the cryptocurrency asset has dropped noticeably from its high of $55 to a low of $4.41. Even though the altcoin has reached the oversold area of the market, it has kept falling. For instance, Polkadot encountered another rejection on December 16 at the $5.50 high or the 21-day line SMA. The altcoin hit a low of $4.41 and then began to consolidate above it. The altcoin has been fluctuating above it for the last three days. As it approaches the oversold area, another downward movement is unlikely. Above the $4.00 support, the downward trend could change.

Daily Chart Indicators Reading:
The DOT price is at level 30 on the Relative Strength Index for period 14.It shows that the oversold area of the market has been reached. There’s unlikely to be more selling pressure. Since the price bars are below the moving average line, further decline is also indicated. The downtrend is indicated by the southward sloping 21-day and 50-day line SMAs.

Polkadot (DOT) Medium-term Trend: Bearish
The price of DOT/USD is moving downward on the 4-hour chart. The price of the cryptocurrency is experiencing a string of lower highs and lower lows. As buyers start to show up, the altcoin is trading in the oversold area. The 21-day line SMA is blocking the upward trend.

4-hour chart Chart Indicators Reading
Prior to this, the daily Stochastic was below level 20 and the cryptocurrency was in the oversold area. DOT is currently in a bullish momentum above the daily Stochastic’s level 25. To drive the altcoin to its previous highs, buyers are starting to emerge.

General Outlook for Polkadot (DOT)
Polkadot has reached the point where the market is oversold as it hovers above $4.41. Above the existing support, the altcoin is moving sideways. If the current support is broken, the price of the cryptocurrency will drop even further to a low of $4.00..

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