Polkadot Is Range Bound Despite Its Recovery Above $5.34

The price of Polkadot (DOT) has been falling, but has started to rise again. The price of the cryptocurrency has been moving in a range between $5.34 and $6.17 since November 9. On November 28, when the bulls bought the dips, the bears broke the existing support.

Polkadot price long term analysis: bearish

Polkadot rebounded with renewed vigor. Buyers have risen above the 21-day line SMA, driving the altcoin to its previous highs. If the bullish momentum continues and breaks SMA at the 50-day moving average, there could be room for further gains. Polkadot will regain its previous high of $7.41 if the 50-day SMA line is broken. However, if buyers fail to break the recent high, DOT will break down and start a sideways movement within the range zone.

Analysis of the Polkadot indicator 

For the period 14, the price of DOT is at the level 49 of the Relative Strength Index. This indicates that supply and demand are in balance. The price of the cryptocurrency has crossed the 21-day line SMA. If Polkadot maintains its position above the 21-day line SMA, a range-bound move will begin. Above the daily stochastic threshold of 68, the altcoin is in an uptrend.

Technical Indicators 

Key resistance levels - $10 and $12

Key support levels - $6 and $4

What is the next direction for Polkadot? 

Polkadot has been in a sideways movement in a limited range. The coin is now moving sideways again after rising above the last support. When the fluctuation range is broken, the altcoin will develop a trend.

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.