Polkadot Recovers from Downward Correction, Resumes Uptrend

The price of Polkadot (DOT) has recovered from the recent slump as it has risen above the moving averages.

Today, the altcoin has risen from the previous low of $22.50 to the high of $31.64. The uptrend is encountering a small resistance at $32.00.

If buyers break through this small resistance, the altcoin will rise to the high of $36. At this level, Polkadot is considered to be in our overbought region of the market. The crypto will be forced to retrace to the low of $31.00. Meanwhile, the cryptocurrency asset is struggling to break above the resistance at $32.00. The altcoin is fluctuating between the $30 and $32 levels in anticipation of a bullish momentum.

Polkadot indicator analysis

DOT/USD has risen to the level of 58 on the Relative Strength Index for period 14. This indicates that the cryptocurrency is in an uptrend and is capable of rising to the upside. The price of DOT is above the 21-day and the 50-day SMA, which indicates that the market will rise. The price of the cryptocurrency is above the 80% range of the daily stochastic. This indicates that the market has reached the overbought zone.

Technical indicators:

Major Resistance Levels - $48 and $52

Major Support Levels - $24 and $20

What is the next direction for Polkadot?

On the 4-hour chart, Polkadot has resumed its uptrend. The altcoin is currently facing rejection at the recent high. The uptrend will resume if this resistance is broken. Meanwhile, the uptrend from September 10 has shown a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the 1.272 Fibonacci extension level, or $34.73. 

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.