Polkadot Risks Decline as It Approaches Its $4.60 Low

Polkadot (DOT) Price Long-term Trend: Bullish

Polkadot (DOT) retraces above the 21-day SMA support as it approaches its $4.60 low. The cryptocurrency asset is currently trading above the $4.60 low or the 21-day SMA support in the bullish trend zone. The price of DOT surged to $5.40 on May 10 but was repelled at the most recent high. If buyers break through the $5.40 barrier, Polkadot is predicted to hit the high of $6.40.

The cryptocurrency has dropped below the 21-day SMA support today. If the 21-day SMA support holds, the price range between it and the resistance at $5.40 will remain intact. The crypto asset may drop below the $4.18 low or rise above the 50-day SMA if the 21-day SMA support is broken. Today, the DOT price is now $4.71.

Polkadot Indicator Analysis 

The moving average lines are going upward when the 21-day SMA is above the 50-day SMA. This suggests the cryptocurrency’s early ascent. As the altcoin retraced above the 21-day SMA support, the bearish surge reached exhaustion. A potential upward rise of the altcoin is prepared for by the 21-day SMA support. Nevertheless, the selling pressure will return if the 21-day SMA support is breached.

General Outlook for Polkadot (DOT)

Polkadot remains above the daily chart’s moving average lines but approaches its $4.60 low. On the 4-hour chart, the price of DOT is moving horizontally between the $4.40 support and below the $5.40 resistance. The crypto price has been fluctuating within the restricted range. The altcoin will trend after breaking the range-bound levels.

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