Polkadot (DOT) is in a downtrend as the cryptocurrency has fallen to the low of $5.65 and is retreating. The altcoin has risen above the $6.00 support level.
Since July 13, the cryptocurrency has been trading above the $5.98 support. On the upside, the DOT price is limited by the 21-day line SMA. The cryptocurrency risks a further decline. However, if the cryptocurrency price recovers, Polkadot will rally above the moving average lines. Today, the altcoin is rising to retest the 21-day line SMA. Selling pressure will increase again if the crypto turns down from the moving average lines.
Polkadot indicator analysis
Polkadot has continued to slide lower at the 40 level of the Relative Strength Index for the 14 period. The altcoin is capable of a decline as the price bars are below the moving average lines. The cryptocurrency is below the 40% area of the daily stochastic. The moving average lines are pointing south, which indicates a downtrend.
Key Resistance Zones: $10, $12, $14
Key Support Zones: $8.00, $6.00, $4.00
What is the next direction for Polkadot?
The cryptocurrency is consolidating above $5.98. The altcoin is expected to reverse above the $6.00 support. The market has reached the oversold region and buyers are expected to push prices higher. Polkadot is currently trading above $6.00.
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 in funds.