Polkadot Breaks the Previous Low at $13.09, Resumes a Downward Move
The price of Polkadot (DOT) breaks below the previous low at $13.09 as the altcoin resumes the second round of selling pressure.
The current breakdown was a result of crypto price containment between $14.70 and $16.50. The downtrend became possible as bears broke through support at $$14.70 and $13.09.
Today, the DOT price has fallen to the first price target of $12.43. DOT /USD is capable of reaching the second price target of $9.59. Meanwhile, the daily price indicators have shown that the DOT price has reached a bearish exhaustion. The polkadot has reached the oversold area of the market. There may be no room for downward price movement. The crypto is trading at $12.40 at the time of writing.
Polkadot indicator analysis
Polkadot has fallen to the 31 level on the Relative Strength Index for period 14. The altcoin is in the downtrend zone and is about to fall into the oversold area. DOT price is below the 20% area of the daily stochastic. The crypto has fallen into an oversold region. The 21-day and 50-day lines SMA are sloping south, indicating a downtrend.
Technical indicators:
Major Resistance Levels – $48 and $52
Major Support Levels – $18 and $12
What is the next direction for Polkadot?
Polkadot is in a downtrend. On the 4-hour chart, the cryptocurrency has fallen sharply from the high of $15.50 to the low of $12.40. Meanwhile, on July 13 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of 1,272 Fibonacci extensions or the level of $12.43 and then reverse. From the price action, the altcoin has tested the Fibonacci level. The altcoin reversal will not be immediate.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.
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