Polkadot Breaks Initial Resistance as It Targets the $14 High
The price of Polkadot (DOT) is in a downtrend today, but is making an impressive move to the upside. Buyers have overcome the initial resistance at $10. This is an indication of strong buying at lower price levels.
The cryptocurrency will rally to $14 if the current upward momentum continues. Nonetheless, the current uptrend is approaching an overbought region of the market. DOT/USD could face resistance at the recent high.
At press time, the altcoin is trading at $11.32. The bulls have yet to convincingly overcome the initial resistance. Should the price of DOT fall below the $10 price level, the altcoin would be forced to move in a range between $7.18 and $10.00. In the meantime, buyers are still holding above the $10 support.
Polkadot indicator analysis
Due to the recent uptrend, the price of DOT is at the level 37 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone, but is moving into the uptrend zone. The price bars of the cryptocurrency are below the moving averages that are responsible for the current downtrend. DOT price is above the 80% range of the daily stochastic. This indicates that the market has reached the overbought zone. It also means that the current uptrend could be rejected in the overbought region.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
DOT/USD has regained its bullish momentum after rising above the moving averages. The current uptrend has reached the overbought area of the market. Meanwhile, the May 12 uptrend has a candlestick body testing the 50% Fibonacci retracement level. The retracement suggests that the price of DOT will rise to the level of the 2.0 Fibonacci extension or the level of $11.65.
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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