Polkadot (DOT) remains in a downward correction. The cryptocurrency has found support above the 21-day line SMA.
In other words, the price is consolidating above $27 support after being rejected at the $32 high. Polkadot is trading at $27.63 as of press time.
The altcoin is above the 21-day line SMA but below the 50-day line SMA. This means that the price of DOT will again fluctuate between the moving averages until a breakout is achieved. Sellers have the upper hand as the cryptocurrency is trading in the bearish trend zone. For example, if the bears break the support at $27, the market will fall to the low of $23.50
Polkadot is at level 45 of the Relative Strength Index for period 14, indicating that the altcoin is still in the downtrend zone, but below the center line 50. The price of DOT is above the 21-day moving average, but below the 50-day moving average. Polkadot is in bullish momentum as it is above the 40% area of the daily stochastic.
Major Resistance Levels - $52 and $56
Major Support Levels - $28 and $24
On the 4-hour chart, Polkadot is in a downtrend but has resumed its upward movement. The price is retesting the 21-day moving average line. Meanwhile, the downtrend from December 29 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that DOT will fall but reverse at the 1.272 Fibonacci extension level or $25.63.
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.