Polkadot Risks Decline below Current Support as It Targets the $5.60 Low

Updated:

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

Polkadot (DOT) Price Long-term Trend: Bearish
Polkadot’s (DOT) price is in a downtrend as it targets the $5.60 low. Buyers have failed to keep the price above the 21-day line SMA, hence the downtrend. Today, the DOT price is retesting the 21-day line SMA as it faces rejection. . In other words, the 21-day line SMA has restrained a further upward movement of the cryptocurrency. On the downside, if the crypto turns from the 21-day line SMA, it will decline to the current support at $6.37.Where the selling pressure persists, the altcoin will further decline to $5.60 low. Conversely, if the current support holds, the cryptocurrency will be fluctuating between the $6.37 and $7.25 price levels.

Polkadot Risks Decline below Current Support as It Targets the $5.60 Low
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
The altcoin is at level 45 of the Relative Strength Index for period 14. DOT price is in the downtrend zone and may further decline. It is below the moving average lines indicating a further decline. The moving average lines are sloping southward indicating a downtrend.

Polkadot (DOT) Medium-term Trend: Bullish
On the 4-hour Chart, the altcoin is making upward correction as it breaks above the moving average line and pulls back. It is trading above the 21-day line SMA but below the 50-day line SMA. The selling pressure will continue if price breaks below the 21-day line SMA.

Polkadot Risks Decline below Current Support as It Targets the $5.60 Low
DOT/USD – 4 hour Chart

4-hour chart Chart Indicators Reading
DOT is below the 80% range of the daily stochastic. The market is in a bearish momentum. The moving averages lines are sloping horizontally indicating sideways. The price bars are above the 21-day line SMA but below the 50-day line SMA indicating a range-bound move.

General Outlook for Polkadot (DOT)
Polkadot is in a downtrend as it targets the $5.60 low. The selling pressure may persist if the bulls fail to break above the 21-day line SMA. The cryptocurrency may further decline if it loses the $6.37 support.


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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.