Polkadot Trades Sideways but Risks a Fall below $6.50

Polkadot (DOT) Price Long-term Trend: Bearish

Polkadot’s (DOT) price has been stuck below the 50-day SMA support but risks a fall below $6.50. The cryptocurrency has been trading above the $6.50 support but below the 50-day SMA resistance. The 50-day SMA has stopped the upward movements twice. Polkadot will resume its bullish trend whenever the price rises above the 21-day SMA resistance. According to the price signal, the DOT price will fall further if the existing support is breached.

The altcoin will return to its previous low of $6.00, with bearish momentum extending to a low of $4.96. Meanwhile, the DOT/USD exchange rate is at $6.97.

Technical indicators:  

Key Resistance Levels: $10, $12, $14
Key Support Levels: $5, $3, $1

Polkadot Indicator Analysis 

For the past week, the price bars have fallen below the downward-sloping moving average lines. The price bars have encountered resistance at the 50-day SMA. On the downside, bulls have defended the present price of $6.50. On December 20, the bulls bought dips, leaving a long candlestick tail. The extended candlestick indicates strong buying pressure above the $6.00 support.

General Outlook for Polkadot (DOT)

Polkadot trades sideways on the 4-hour chart but risks a fall below $6.50. The altcoin trades above the $6.50 support level and below the moving average lines. The price movement has been flat as Doji candlesticks consolidate above the existing support. Meanwhile, the crypto signal is unfavorable, as altcoins trade in the bearish trend zone.

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