Polkadot Turns from $9 Overhead Resistance as It Resumes a Downtrend

Updated:

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

DOT/USD Long-term Trend: Bullish
Polkadot’s (DOT) price is in an upward correction but turns from $9 overhead resistance as it resumes a downtrend. . On the August 9 uptrend; the DOT price was repelled at the high of $9.45 as buyers failed to keep the price above the resistance level. The cryptocurrency is also trading in the overbought region of the market. Polkadot will rise to $10.80 and $12 price levels if the bulls break the resistance at $9, On the other hand, if the bulls fail to break the overhead resistance, the altcoin will decline and find support above the $7.68 support. However, the downtrend will resume if the DOT price retraces and breaks below the moving average lines. The altcoin will further decline to the low of $6.52 price level.

Polkadot Turns from $9 Overhead Resistance as It Resumes a Downtrend
DOT/USD – Daily Chart

Daily Chart Indicators Reading:
DOT is at level 60 of the Relative Strength Index for period 14. It indicates that the price is in the bullish trend zone and may further rise. The price is above the 21-day line SMA and 50-day line SMA which implies a further upward move.

DOT/USD Medium-term bias: Bearish
On the 4– hour chart, the DOT price is in a downward correction. It is facing rejection at level $9.39. Meanwhile, on the August 9 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. It indicates that DOT will fall but reverse at level 1.272 Fibonacci extension or $8.45 price level.

Polkadot Turns from $9 Overhead Resistance as It Resumes a Downtrend
DOT/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The altcoin is below the 20 % range of the daily stochastic. It indicates that the coin has fallen to the oversold region. The 21-day line and 50-day line moving averages are sloping upward indicating the uptrend.

General Outlook for Polkadot
Polkadot is in an upward move but turns from $9 overhead resistance as it resumes a downtrend. The cryptocurrency is trading in the overbought region of the market, hence the attraction of sellers. On the daily chart, the uptrend will resume if price finds support above the moving average lines.



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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.