Polkadot Is Range Bound between $28 and $45, Unable To Break Recent High

Polkadot's price is range-bound between the resistance at $45 and the current support at $28. Buyers could not push the DOT price above the $45 high.

A candlestick’s wick is pointing to the resistance zone. The long wick indicates that there is strong selling pressure at a high price level. That is, an upward move is doubtful. Similarly, DOT/USD fell after its rejection at the $45 resistance zone. The current downward move has been stalled before the $28 support. 

The candlestick has a long tail. This length of the candlestick indicates that there is strong buying pressure above the $28 support. Nevertheless, if the bears fail to break the $28 support, the current downtrend will be terminated. DOT/USD will resume a range-bound movement between $28 and $45 high. DOT price will resume trending if the range-bound levels are broken.

Polkadot indicator analysis  

The altcoin is above the 20% range of the daily stochastic. It indicates the market is in a bullish momentum. DOT/USD is at level 34 of the Relative Strength Index period 14. It indicates that the altcoin is approaching the oversold region of the market. This will bring the emergence of buyers.

Technical indicators:  

Major Resistance Levels – $44 and $48

Major Support Levels – $24 and $20

What is the next direction for Polkadot? 

The Polkadot downtrend has been stalled as it faces strong buying pressure above the $27.50 support. The price indicator has suggested a further downward movement of prices. On April 18 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement. This retracement indicates that DOT will fall to level 1.618 Fibonacci extension or a low of $21.84. From the price action, the market reverses after testing the low of $27.50.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.