Polkadot Retraces as It Struggles to Hold above the $5.50 Support

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

Polkadot (DOT) Price Long-term Trend: Bullish
Polkadot (DOT) price has broken above the barrier level as it struggles to hold above the $5.50 support. The DOT price has already reached a high of $5.70. According to the price indicator, the cryptocurrency will continue to increase to a high of $6.88.

However, the altcoin reached a high of $5.73 on July 14 and was resisted at the current high. A retraced candle body tested the 50% Fibonacci retracement level on July 4 upswing. The retracement shows that DOT will increase to Fibonacci Extension level 2.0, or $6.88.

However, further higher movement of the coin is unlikely as the market approaches overbought territory. Meanwhile, the altcoin is trading above the $5.50 support level.

Daily Chart Indicators Reading:
Following the latest breakthrough, the DOT price is now at Relative Strength Index level 61 for period 14. The recent increase was feasible since the price bars remained above the moving average lines. As a result of its rejection at the recent high, the crypto asset has been trading in the overbought range.

It is in a bearish trend below the daily Stochastic level of 80.

General Outlook for Polkadot (DOT)
Polkadotis is in the bullish trend zone as it struggles to hold above the $5.50 support. However, the overbought condition is restraining the cryptocurrency’s upward growth. If the altcoin retraces above the $5.50 level, the rise may continue. In a strong trending market, the overbought condition may not last.

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