The price of Polkadot (DOT) is in a downward correction but capped between $13.50 and $17. DOT has fallen into the lower price range due to yesterday's rejection. At the time of writing, it has risen to $15.35.
Buyers have made three attempts to break through the high at $17. On the third attempt, the bulls break through resistance and reach the high at $17.65. Selling pressure above the recent high was overwhelming as the bears pushed DOT into the range-bound zone. If buyers push DOT above $17 and bullish momentum continues, the market will rise to the high at $21.50. The bullish momentum will likely extend to the high at $25.50. However, if buyers are pushed back from the recent high, DOT will likely fall and break support at $13.
Polkadot has fallen to the 40 level on the Relative Strength Index for period 14. The altcoin is in the bearish trend zone and is capable of falling to the downside. The price is below the 20% area of the daily stochastic. The cryptocurrency has fallen into oversold territory as buyers are likely to emerge to push prices higher.
Major Resistance Levels - $48 and $52
Major Support Levels - $22 and $18
The price of Polkadot has reached bearish exhaustion as the altcoin may reverse. On July 9 downtrend, a retraced candlestick 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 extensions or the level of $14.07 and reverse. The cryptocurrency will fall back to the 78.6% Fibonacci retracement level where it originated.
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.