Polkadot Defies Decline And Challenges Resistance At $6

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.

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.

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.