Polkadot Holds Above $24 Support and Could Retest $30 High
Polkadot (DOT) price is in a downward correction after failing to hold DOT above the $32 high.
Polkadot (DOT) price long-term analysis: bearish
On the upside trend on December 26, buyers broke through the moving averages but failed to maintain upward momentum above the $32 high. The altcoin fell below the moving average and bottomed above $26. On January 3, the bulls made another attempt but were rejected at the $30 high. Today, the altcoin is below the moving average, but is trading at $24 at the time of writing.
Polkadot is now in a range between $24 and $32. DOT/USD will exit the downward correction if the price breaks above $32 resistance and the upward momentum continues. The current support has held since December 4.
Analysis of the Polkadot (DOT) indicator
The DOT price is below the moving averages, which means that the altcoin is in danger of falling. The altcoin has fallen to level 41 of the Relative Strength Index for the period 14. The market is in the downtrend zone and below the midline 50. The cryptocurrency is above the 25% area of the daily stochastic. The bullish momentum is unstable as the price fluctuates in a downward correction.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot (DOT)?
DOT/USD has been in a downward movement. The cryptocurrency has fallen from the high of $53 to the low of $23. The downtrend started on November 28; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the Fibonacci extension level of 1.272 or $25.88. The price of DOT is moving above the Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author 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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