Polkadot is in a Downward Correction as Buyers Fail to Breach $20 High

In the last 48 hours, the price of Polkadot (DOT) has made desperate efforts to overcome the high of $20. Since January 22, the cryptocurrency's price has fluctuated between $16 and $20.

Neither buyers nor sellers have managed to break this range yet. On February 2, buyers were rejected when they tried to break the recent high. Today, buyers have initiated another upward move to retest the resistance level. On the upside, if buyers break through the $20 resistance level, the market will move up to $30. On the downside, buyers are likely to emerge in the oversold region and defend the current support at $16. In the past few days, the bears were pushed back in the lower price area.

Polkadot indicator analysis

The DOT price is at the 40 level of the Relative Strength Index for the period 14. The recent upward movement has pushed the RSI higher, but the cryptocurrency is still in the downtrend zone and is capable of falling lower. The Polkadot is above the 40% area of the stochastic on the daily chart. The market has resumed its bullish momentum. The cryptocurrency price is still below the moving averages, indicating a possible price decline.

Technical indicators:  

Major Resistance Levels - $52 and $56

Major Support Levels - $28 and $24 

What is the next direction for Polkadot?

Polkadot is still in a downward correction and the altcoin is in a range between $16 and $20. The cryptocurrency will resume its uptrend if $20 is broken. The upward movement is hindered by the presence of indecisive candlesticks with small bodies.

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.