Polkadot Hovers above $5.34 as Buyers Emerge in the Oversold Region

Polkadot (DOT) has fallen above the $5.34 support level. The oversold region of the market is where the cryptocurrency has declined.

The support level of $5.98, which was held since July 13, was breached by the bears. A new low for the altcoin was $5.34. DOT is currently trying to push the price back to the previous highs.

At the high of $6.17, the cryptocurrency corrected upwards but was rejected. Polkadot has been trading between $5.34 and $6.15 since November 10. If the price of DOT recovers and breaks through the $6.40 resistance level, the altcoin will start trending upwards again. In other words, If buyers keep the price above the moving average lines, Polkadot will rise to its previous highs. Since the market has reached the oversold zone, another negative move is unlikely. Another reversal will occur when the current support is broken.

Polkadot indicator analysis

For the period 14, the price of DOT is at level 42 on the Relative Strength Index. The altcoin is in a downtrend and could continue to decline. If the price bars are below the moving average lines, the price of the crypto could fall. The decreasing slope of the moving average lines indicates a decline. The daily stochastic of altcoins is below the level of 20, which means that Polkadot has reached the peak of its bearishness.

Technical indicators:  

Major Resistance Levels – $10 and $12

Major Support Levels – $6 and $4

What is the next direction for Polkadot? 

Polkadot will continue to fall if the bears manage to break the support at $5.34. The sideways movement may continue if the range boundaries are broken. A candle body tested the 78.6% Fibonacci retracement line on November 9. The correction predicts that the price of DOT will fall to the level of 1.272 in the Fibonacci sequence, or $4.17.

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.

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