Polkadot Defies Decline And Challenges Resistance At $6

Jan 21, 2023 at 10:30 // Price
Coin Idol
Polkadot could face another rejection in the overbought zone

The price of Polkadot (DOT) is in the bullish trend zone and starts a new rise.

Polkadot price long-term analysis: bullish

On January 14, the previous trend ended with a high of $6.53. As the market entered an overbought zone, it was pushed back. In an attempt to surpass the previous highs, Polkadot is currently trading below the $6.00 resistance level. On the positive side, Polkadot could face another rejection in the overbought zone. If the altcoin falls back below the $5.50 breakout level or the moving average lines, selling pressure will increase. If the selling pressure continues, Polkadot will test the previous low at $4.25.

Polkadot indicator analysis

Polkadot is in the bullish trend zone with a Relative Strength Index of 66 for the period 14. After the retracement, the price bars are above the moving average lines. Polkadot is in a positive trend above the 40 level on the daily chart's Stochastic. DOT the price is rising to retest the $6.00 level.

DOTUSD(Daily Chart) - January 20.23.jpg

Technical indicators:

Key resistance levels - $10 and $12

Key support levels - $6 and $4

What is the next direction for Polkadot?

DOT/USD was trading sideways below the $6.20 level. The price movement was limited below the $6.00 mark. The cryptocurrency price has broken the 21-day line SMA on the 4-hour chart, indicating that the altcoin's uptrend has resumed. As the market has reached an overbought zone, the current upswing might be rejected.

DOTUSD(4 hour Chart) - January 20.23.jpg

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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