Polkadot Is in a Sideways Trend below $13.50, Downtrend Likely

Jul 24, 2021 at 07:19 // News
Coin Idol
Bears will try to push DOT below the previous low at $10.36

Polkadot (DOT) price rises to $13.50 but fails to break recent high. DOT price is now consolidating below the recent high. Buyers face strong resistance at $13.50. If buyers fail to break the resistance zone, the downtrend will resume.

Bears will again try to push DOT /USD below the previous low at $10.36, which will force the altcoin to fall to $7.0. However, the selling pressure is inevitable as the cryptocurrency reaches the overbought region of the market. DOT /USD is trading at $12.96 at the time of writing.

Polkadot indicator analysis

Polkadot has fallen to the 41 level of the Relative Strength Index of the period 14. The altcoin is in the bearish trend zone and below the midline 50. DOT price is above the 80% area of the daily stochastic. The cryptocurrency is in the overbought region of the market. Sellers have emerged as the market resumed its downward movement. The 21-day and 50-day lines SMA are sloping south, indicating the downtrend.


Technical indicators:

Major Resistance Levels - $48 and $52

Major Support Levels - $18 and $12

What is the next direction for Polkadot?

Polkadot's recent uptrend is rejected at the $13.50 high. The market is in a bearish momentum. Meanwhile, on July 21 uptrend, a retraced candlestick tested the 78.6% Fibonacci retracement level. The retracement indicates that the DOT price will rise but reverse at the 1,272 Fibonacci extensions level or $13.52 level. From the price action, the altcoin has tested the Fibonacci level and it is reversing.


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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