Polkadot Slumps as It Faces Stiff Resistance at $55

Today, the price of Polkadot (DOT) continued its downward movement after falling below its 21-day moving average. The bearish momentum continues as the price hits the 50-day moving average.

A break below the 50-day moving average line will push the cryptocurrency into the downtrend zone. Today, the price of DOT has fallen from a high of $55 to a low of $45. 

The $55 price level was reached when the altcoin bounced above the $41 support and reached the $48 resistance. The uptrend extended to the high at $55, but buyers failed to sustain the bullish momentum above the recent high. At the $55 high, the RSI for period 14 was at a reading of 72. Sellers emerged in the overbought region and pushed prices lower. It is likely that things will continue to go down.

Polkadot indicator analysis

DOT price has fallen to the 48 level of the Relative Strength Index of the period 14. The cryptocurrency was previously overbought at level 72 when sellers appeared in the overbought region. The altcoin is in the downtrend zone and below the midline 50. The cryptocurrency is below the 50% area of the daily stochastic. Polkadot is in a bearish momentum.

Technical indicators:  

Major Resistance Levels - $52 and $56

Major Support Levels - $28 and $24

What is the next direction for Polkadot? 

DOT/USD is in a downward trend. The cryptocurrency is approaching the previous low of $42. Meanwhile, on the downtrend from November 6, a retreating candlestick has tested the 38.2% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the 2.618 Fibonacci extension level, or $39.05.

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.