Today, the price of Polkadot (DOT) is in a downward correction as the altcoin holds above the crucial $16 support. Every time the bears break the current support, the bulls will buy the dips.
On March 7, Polkadot broke above the current support and continued its uptrend. The DOT price broke above the 21-day moving average line, but is below the 50-day moving average line.
The altcoin is now trading between the 21-day line and the 50-day moving average line. If the price of DOT rises and breaks the resistance at $19, a rally above the moving averages is expected. If the bullish momentum continues, DOT will come out of the downward correction. On the other hand, if the bullish scenario proves to be invalid, the price of DOT will be forced to move between the moving averages.
The cryptocurrency is at the 49 level of the Relative Strength Index for the 14 period, which indicates that there is a balance between supply and demand. The cryptocurrency price bars are between the moving averages, indicating a possible price fluctuation. DOT is above the 30% range of the daily stochastic. The market is in a bullish momentum, but it is unstable.
Major Resistance Levels - $52 and $56
Major Support Levels - $28 and $24
DOT/USD is in a downtrend, but selling pressure has eased after the January 22 price drop. Meanwhile, the January 22 downtrend has yielded a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that DOT will fall to the 1.272 Fibonacci extension level or the $11.17 level.
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.