Polkadot Gives Way Significantly and Holds Above $7.00

The price of Polkadot (DOT) has resumed its downtrend as the price falls below the moving average lines.

Long-term analysis of the price of Polkadot: bearish

On August 13, the cryptocurrency was pushed off at the upper resistance of $9.68. Buyers failed to break through the resistance after two attempts. DOT Price fell below the moving average lines. Today, the bears pushed the altcoin to the low of $7.28. The current support at $7.28 is the historical price level from July 25. Selling pressure will resume when the price falls below the current support. The cryptocurrency price will then continue to fall to the previous lows at $6.52 and $5.98. However, if the current support holds, Polkadot will go back up and retest the initial resistance at $8.00.

Polkadot indicator analysis

The cryptocurrency is at level 39 of the Relative Strength Index for the period 14. DOT price is in the downtrend zone and could fall further. The price of the cryptocurrency is below the moving average lines, which indicates further selling pressure. The price of the altcoin is below the 20% range of the daily stochastics. Stochastic has indicated that selling pressure has reached bearish exhaustion. In other words, the market is oversold.

Technical Indicators

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

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

What is the next direction for Polkadot? 

On the 4-hour chart, Polkadot has dropped significantly to the downside. The cryptocurrency has fallen into the oversold area of the market. This will attract buyers who will show up in the oversold region of the market and push prices up.

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.