Polkadot Hovers Above $5.00 Support And Threatens To Sink

Jan 14, 2023 at 08:30 // Price
Coin Idol
Polkadot is currently trading in an overbought area of the market

Polkadot (DOT) price has declined since its high of $5.28. If it goes back above the breakout level of $5.00, the uptrend will continue. The uptrend will then continue to the high of $7.50.

Polkadot price long term analysis: bearish

The altcoin will continue to rise if buyers manage to keep the price above the moving average lines. Polkadot is currently trading in an overbought area of the market. It is unlikely that the altcoin will continue to rise. The bullish momentum might be abandoned at the recent high. The price of DOT is now declining after turning lower at the recent high. The cryptocurrency will enter a rangebound trend if it declines and finds support above the 21-day SMA line. The downtrend will resume if the bears break below the 21-day line SMA.

Polkadot indicator analysis  

The Relative Strength Index of the cryptocurrency is now at 69. The overbought sector of the cryptocurrency market has been reached. The price of DOT is most likely to fall. The moving average lines are above the price bars, indicating that the price will continue to fall. Polkadot has reached the overbought area of the daily stochastic above level 80. The current uptrend is likely to come to an end.

DOTUSD(Daily Chart) - January 13.23.jpg

Technical indicators: 

Key resistance levels - $10 and $12

Key support levels - $6 and $4

What is the next direction for Polkadot? 

DOT /USD breaks through the resistance of $5.00 and rises to the high of $5.28. It crosses the support level of $5.00, preparing for a possible upward push. On the other hand, Polkadot will fall and move back in a range if buyers fail to keep the price above the resistance or the 50-day line SMA.

DOTUSD(4Hour Chart) - January 13.23.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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