Today, the price of Polkadot (DOT) rallied above $8 support as the altcoin resumes its sideways movement.
Yesterday, the bears pushed the cryptocurrency to the $8.83 low, while the bulls bought the dips. The current sideways movement would be over if the bears broke below the $8 support and the bearish momentum continued. The polkadot would then have regained the previous low at $7.18.
Now buyers are trying to push the altcoin higher to reach the previous highs. The upside is doubtful as the uptrend is limited below the $10 high or the 21-day moving average line. On the upside, a price rally is capable of rising above the 21-day moving average line. However, if the price of DOT is rejected at the recent high, the altcoin will fall and drop below the $8 support.
The DOT price is at the 39 level of the Relative Strength Index for the 14 period. The market is in the downtrend zone as the price bars are below the moving averages. The daily stochastic is above the 25% range. The bullish momentum is volatile. The 21-day line and the 50-day line SMAs are sloping south, indicating a downtrend.
Key resistance levels - $52 and $56
Key support levels - $28 and $24
The DOT price faces a difficult task as the upside is restricted below $10. Meanwhile, on May 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of 1.272 Fibonacci extension or the level of $4.95.
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.