Polkadot Retraces as Sellers Flock to the Overbought Area at $7.88

Key Resistance Levels: $10, $12, $14
Key Support Levels: $18, $6,$4

Polkadot (DOT) Price Long-term Trend: Bullish
Polkadot (DOT) price is currently trading in the positive trend zone as sellers flock to the overbought area at $7.88.The price level of November 7 has been surpassed by the retracement. If the $7.45 support holds, the altcoin will resume its upward trend. The $8.00 resistance level will be retested and broken by the DOT price. The altcoin will surge to $9.50 if it breaks above the $8.00 resistance. The market is on the verge of being overbought, so further upward movement is unlikely. The altcoin’s price will decrease if it is rejected at the current high. The market will start to decline from the high of $7.45 to the low above $6.50, or the 21-day line SMA. The price will resume its downward trend if it falls below the 21-day SMA.

Daily Chart Indicators Reading:
Polkadot is in the bullish trend zone at level 66 of the Relative Strength Index for period 14. The price bars have continued to rise and remain above the moving average line. The daily Stochastic is below level 80, which suggests that the value of the cryptocurrency could decline. The upward slope of the moving average lines indicates an uptrend.


Polkadot (DOT) Medium-term Trend: Bearish
On the 4-hour chart, the DOT price is in the bullish trend zone as it reaches a high of $7.54. As long as the price is above the moving average lines, there is a tendency for further upward movement. The market has now entered the overbought zone, halting the upward trend. If the retracement persists, the coin will fall.

4-hour chart Chart Indicators Reading
The altcoin’s daily Stochastic has fallen below level 80. That suggests the market has become overbought. Sellers will flock to the overbought region of the market.


General Outlook for Polkadot (DOT)
Polkadot is being rejected at its most recent high as sellers flock to the overbought area at $7.88. The coin is now retracing after reaching an overbought region. The uptrend will resume if the cryptocurrency asset retraces and finds support above the moving average lines. If the price drops below the 21-day line SMA, the price will resume its downward trend.


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