Polkadot Price Reaches the Oversold Region, Downward Move Is Doubtful In the Interim

May 29, 2021 Polkadot (DOT) price is trading at $22.09. Following the breakdown on May 19, buyers and sellers have been in a price tussle between $16 and $32.

Polkadot (DOT) Price Long-Term Analysis: Bearish

Last week the bears succeeded in sinking DOT to the low of $16 twice. On the other, the bulls bought the dips to push the altcoin above the $32 high or above the moving averages. Now if the DOT price is pushed above the $32 support, the market will be out of a downward correction. Possibly, the coin will rise on the upside as it is in the bullish trend zone. 

However, the bulls could not sustain the bullish momentum above the moving averages as the price slumps to the middle of the price range. According to the daily stochastic, Polkadot has reached bearish exhaustion. Further selling pressure is unlikely on the downside. 

Polkadot (DOT) Indicator Analysis  

The altcoin is above the 25% range of the daily stochastic. This indicates that the market has bullish momentum. This is contrary to the price action which is in a downward move. DOT price is still at level 38 of the Relative Strength Index period 14. It indicates that the market is in the downtrend zone and below the centerline 50.

Technical indicators:  

Major Resistance Levels – $48 and $52

Major Support Levels – $32 and $28

What Is the Next Direction for Polkadot (DOT)? 

DOT price has fallen to the low of $13 and pulled back. Meanwhile, on May 19 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that DOT will fall to level 1.272 Fibonacci extension and reverse.  

Disclaimer. This analysis and forecast are the author’s personal opinions and 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.