Polkadot Drops within Range Bound Zone as It Faces Rejection at $10.79

Polkadot Drops within Range Bound Zone as It Faces Rejection at $10.79

June 4, 2022

The price of Polkadot (DOT) has come under renewed selling pressure after being rejected at $10.79. The altcoin could have risen to the high of $12 if the resistance was broken.

Subsequently, the cryptocurrency would rise to the high of $16. However, the selling pressure is overwhelming as the uptrend is restricted below the 21-day line SMA. 

The decline is likely to continue to the low of $8.00. Originally, the cryptocurrency was moving in a range between $8 and $12 since May 12. The altcoin could reach the lower price range of $8 again. The altcoin will remain pegged between $8 and $12 price levels if the current support holds. However, if the current support is broken, the altcoin will regain the previous low of $7.18.

Polkadot indicator analysis  

The cryptocurrency is at level 39 of the Relative Strength Index for the period 14. It is in the downtrend zone, falling and approaching the low of the support at $8. DOT is below the 40% area of the daily stochastic. The market has resumed its bearish momentum. The moving averages are sloping south, indicating a downtrend.

Technical indicators:  

Major Resistance Levels – $28 and $30

Major Support Levels – $16 and $14

What is the next direction for Polkadot?

Polkadot is in the process of retreating to the lower $8 price area, which has held since May 12. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of 1.272 Fibonacci extension or the level of $ 4.95.

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.

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