Polkadot Slumps as It Returns to Its Critical $6.00 Low

Polkadot (DOT) Price Long-term Trend: Ranging

Polkadot’s (DOT) price continues to move sideways as it returns to its critical $6.00 low. The DOT price has been trapped between the $6.00 support and the $8.00 resistance since the price slump on December 20. The range-bound limitations have not been breached by the bulls or the bears. The DOT price has fallen after being trapped between the moving average lines.

The DOT price will drop to its previous low above $6.00 if the bears break below the 21-day SMA support. Polkadot will remain restricted if the 21-day SMA support holds. However, if it breaks above the 50-day SMA, it will resume its bullish trend. The altcoin will hit the $9.00 and $9.50 highs again. The DOT price is currently at $7.05 as of this writing.

Polkadot Indicator Analysis 

The DOT price is on the verge of breaching below the 21-day SMA, but it is still between the moving average lines. It will decline as a result of the breakup. The price bars are still wedged between the moving average lines on the 4-hour chart. The sideways trend is causing the moving average lines to slope horizontally.

General Outlook for Polkadot (DOT)

Polkadot faces rejection at the $7.58 resistance level as it returns to its critical $6.00 low. The altcoin will drop back to the previous low above $6.00 if the bearish momentum continues. The existence of Doji candlesticks is only slightly responsible for the selling pressure. The crypto signal is range-bound because of the altcoin’s narrow trading range.

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