Polkadot Retraces and Consolidates Above $20, May Resume Uptrend
Polkadot (DOT) is falling back after reaching the high of $23. The bulls previously broke through the $19 and $20 resistance levels, but could not overcome the $23 resistance.
Buyers were pushed back after retesting the resistance zone twice. Today the market fell to a low above $20, but the bulls bought the dips.
Support at $20 was previous resistance and buyers are desperately trying to resist further selling pressure. On the upside, if the crypto price holds above the $20 support, the DOT price will resume its upward movement and retest the previous highs. On the other hand, if the bears break the $20 support, the market will fall back to the previous low at $16, i.e. the downward correction will continue.
Polkadot indicator analysis
DOT price of DOT has fallen to the value 57 of the Relative Strength Index for the period 14. Polkadot is in the upward movement zone after a minor retracement. The altcoin is capable of another uptrend. The cryptocurrency has a bullish crossover. That is, the 21-day line SMA crosses above the 50-day line SMA, signaling a buy order. The altcoin is below the 25% range of the daily stochastic. The market is still in a bearish momentum. The 50-day line SMA and the 21-day line SMA are up, indicating an uptrend.
Technical indicators:
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
DOT/USD is in a downtrend as the altcoin is set back from its recent high. The altcoin has fallen above the $20 support level. The market will continue to fall if the current support is broken. Meanwhile, the uptrend from April 1 has a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that DOT will rise, but will rebound at the Fibonacci extension of 1.272 or $20.
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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