Polkadot Retraces to $45 Support as Buyers Recoup to Resume Uptrend

Today, the price of Polkadot (DOT) broke above resistance at $45 as the market peaked at $45.74. However, buyers are still struggling to maintain the bullish momentum. Sellers are putting up fierce resistance, pushing DOT above support at $45.

Since October 20, buyers have failed to keep the price above $45. If the bulls manage to keep the price above the recent high, the polkadot will rise to $50. However, if the bulls fail to maintain the bullish momentum, the cryptocurrency will fall. A decline to $34 is to be expected. Moreover, Polkadot is approaching the overbought zone. The upside is doubtful and besides, sellers will appear in the overbought region to push prices down. 

Polkadot indicator analysis

DOT has risen to the level 67 of the Relative Strength Index of the period 14. The altcoin will be overbought at the RSI level of 70. The moving averages of the 21-day line and the 50-day line are pointing north, indicating an uptrend. The cryptocurrency is above the 80% area of the daily stochastic. The market is in a bearish momentum, but the stochastic bands are sloping horizontally.

Technical indicators:  

Major Resistance Levels – $52 and $56

Major Support Levels – $28 and $24 

What is the next direction for Polkadot?

Polkadot is already in an uptrend, but buyers have yet to sustain the bullish momentum. Today, the upside move was staved off as the altcoin fell above $45 support. Meanwhile, the uptrend from October 22 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that the price of DOT will rise to the 1.618 Fibonacci extension level, or $47.11.

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.

Source: Read Full Article