Polkadot Drops Significantly as It Can Hold above $5.98 Support

Sep 24, 2022 at 08:15 // Price
Coin Idol
Polkadot has fallen into the oversold zone of the market

The price of Polkadot (DOT) is in a downtrend and has fallen to the lower price level of $5.98. This support is the historical price level from July 13 and has not been broken yet.

Long-term analysis of the Polkadot price: bearish

The cryptocurrency has fallen into the oversold zone of the market. Further downward movement of prices is unlikely. If the sellers break the $6.00 support, the altcoin will fall to a low of $4.00. However, Polkadot will resume its uptrend if the current support holds. On July 13, the cryptocurrency rallied from the $5.98 support and reached the high of $9.64 on August 10. Today, Polkadot is trading at $6.29 at the time of writing.

Analysis of Polkadot indicators

Polkadot is at level 36 of the Relative Strength Index for the period 14. DOT The price is in the downward zone, as buyers appear in the oversold region. DOT Polkadot's price bars have fallen well below the moving average lines, indicating a further decline in the altcoin. The cryptocurrency is below the 20% range of the daily stochastic. This confirms that the market has reached the oversold zone. 

DOTUSD(Daily Chart) - September 23.png

Technical Indicators

Key resistance zones: $10, $12, $14

Major support zones: $8.00, $6.00, $4.00

What is the next direction for Polkadot? 

Polkadot has retraced to the previous low of July 13. The downtrend has reached its bearish exhaustion. Meanwhile, the downtrend tested the 78.6% Fibonacci retracement level through a candlestick on August 27. The retracement suggests that DOT will fall but will reverse at the Fibonacci level of 1.272 or $6.04. Based on the price action, the market has fallen to the low of $6.31 at the time of writing.

DOTUSD(Daily Chart 2) - September 23.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 in funds.

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