Polkadot Hovers $8 Support as Bulls and Bears Reach Equilibrium

Jun 11, 2022 at 06:30 // Price
Author
Coin Idol
Bulls could break the 21-day line SMA

The price of Polkadot (DOT) is in a downward correction as the altcoin consolidates above $8.00 support. Currently, the current support has been holding since May 12. On June 7, the altcoin resumed trading between $8.90 and $9.40.

Today, the cryptocurrency is trading at $9.16 at the time of writing. Nevertheless, the price movement was slow due to the presence of small, indecisive doji candles. If the price of DOT rises back above the $8.00 support, the bulls could break the 21-day line SMA and rally to the 50-day line SMA. If the bears fall below the $8.00 support, Polkadot will fall back to the previous low of $7.18.

Polkadot indicator analysis  

DOT price is at the 40 level of the Relative Strength Index for the 14 period. Polkadot is trading in the downtrend zone as the altcoin is consolidating above the $8 support. The price bars are below the moving averages, indicating a further decline. The daily stochastic is below the 25% area. The bearish momentum is volatile. 

DOTUSD(+Daily+Chart)+-+June+10.png

Technical indicators:  

Major Resistance Levels - $28 and $30

Major Support Levels - $16 and $14

What is the next direction for Polkadot? 

Polkadot is consolidating above the support level of $8.00. Currently, it is trading in a narrow range and could probably fall down. Meanwhile, on May 11 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the Fibonacci extension level of 1.618 or $2.62.  

DOTUSD(Daily+Chart+2)+-+June+10.png

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.

Show comments(0 comments)