Polkadot Revisits Its Previous Low at $6.82 as It Resumes a Sideways Move

Updated:

Technical indicators:
Major Resistance Levels – $10, $12, $14
Major Support Levels – $8, $6, $4

DOT/USD Long-term Trend: Bearish
Polkadot’s (DOT) price is in a downtrend as it revisits its previous low at $6.82. It declines above the previous low at $6.82 and resumes consolidation above it. The current support has been holding since August 20 as it retested the current support on three occasions. On the upside, buyers have failed to keep the price above the 50-day line SMA or the $8.00. resistance. They could not sustain the bullish momentum above the recent high. On each rejection, the altcoin would decline above the $6.00 support. On the other hand, if Polkadot rebounds and breaks the 21-day line SMA, the altcoin will rise above the 50-day line SMA. Conversely, Polkadot will further decline to $5.98 low if the selling pressure persists.

Polkadot Revisits Its Previous Low at $6.82 as It Resumes a Sideways Move
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
Polkadot is at level 39 of the Relative Strength Index for period 14. The cryptocurrency is in the downtrend zone and may further decline. The moving average lines are sloping horizontally indicating the sideways move. The price bars are below the moving average lines which indicates a further decline of the altcoin.

DOT/USD Medium-term bias: Bearish
On a 4- hour chart, the DOT price makes an upward correction as price breaks above the 21-day line SMA. Meanwhile, on September 14 downtrend, a retraced candle body tested the 78.6%Fibonacci retracement level. The retracement suggests that DOT will fall but reverse at level 1.272 Fibonacci level or $6.77.

Polkadot Revisits Its Previous Low at $6.82 as It Resumes a Sideways Move
DOT/USD – 4 Hour Chart

4 – Hour Indicators Reading
DOT price is below the 80% range of the daily stochastic. The market is in a bearish momentum. The 21-day line and 50-day line moving average lines are sloping southward indicating the downtrend.

General Outlook for Polkadot
Polkadot has been in a range-bound move for the past month as it revisits its previous low at $6.82. The uptrend has been hindered at the $8.00 resistance level. Polkadot has been fluctuating between the $6.00 and $8.00 price levels. The altcoin will trend when the range-bound levels are beached.


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.