Polkadot (DOT) is in an uptrend as the price breaks above the moving average line but is stuck below the 50-day line SMA. In other words, Polkadot is struggling below the $8.00 resistance zone.
Since August 19, buyers have made a concerted effort to break the $8.00 resistance level. The long wicks of the candles indicate that there is strong selling pressure at a higher price level in the $8.00 resistance zone.
If the buyers break the 50-day line SMA or the $8.00 resistance, the DOT price will rise to $9.64. On the other hand, if DOT turns away from its recent high, it will be forced to move between the moving average lines. If the price falls below the moving averages, Polkadot will continue to fall back to the previous lows at $6.52 and $5.98.
Polkadot is at level 54 of the Relative Strength Index for the period 14. The altcoin is in an uptrend zone and is capable of further upward movement. The cryptocurrency price bars are between the moving average lines, which indicates a possible movement of the cryptocurrency in a certain range. The altcoin price is above the 70% range of the daily stochastic. The market is in a bullish momentum.
Key Resistance Zones: $10, $12, $14
Key Support Zones: $8.00, $6.00, $4.00
Polkadot is in an upward correction as buyers push the altcoin into the $8.00 resistance zone. The altcoin could retest the overhead resistance at $9.68 if the recent high is broken. The cryptocurrency will resume its uptrend if buyers overcome the overhead resistance. The bullish scenario will be invalidated if the altcoin deviates from the recent high.
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 in funds.