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Polkadot Continues Downward Correction, But Holds Above $18

Analytics

coinidol.com 23 April 2022 14:26, UTC
  
Reading time: ~2 m

Polkadot (DOT) price is in a downtrend as it is trading below the moving averages.

Yesterday, the upward correction was staved off at the $20 resistance zone. Buyers tried to push the cryptocurrency above the moving averages. 

Polkadot (DOT) Price Long-term Analysis: Bearish

The price of DOT/USD could have reached a high of $23 if the buyers had successfully risen above the moving averages.

Today, the altcoin is trading above the $18 support as we write this article. This $18 price level is the March 13 resistance level. During the last price move in March, the price of DOT broke through the $18 and $19 resistance and reached the high of $23. Today, an upward correction was staved off. The altcoin is likely to fluctuate between $17 and $20. Nevertheless, Polkadot will continue to fall to $15 if the bears break below the current support.

Polkadot (DOT) Indicator Analysis 

The price of DOT has fallen to the 44 level of the Relative Strength Index for the 14 period. This indicates that the altcoin is in the downward zone and can fall downwards. The 21-day line SMA and the 50-day line SMA are inclined horizontally, indicating a sideways movement. The price bars of the cryptocurrency are below the moving averages, which means that Polkadot can fall downwards. The market is above the 40% range of the daily stochastic. Polkadot is in a bullish momentum, but it is unstable.

Technical Indicators: 

Key resistance levels - $52 and $56

Key support levels - $28 and $24

What is the next direction for Polkadot (DOT)? 

Polkadot is in a downtrend but fluctuating above $18 support. Selling pressure will resume if the price falls below $17 support. Meanwhile, the downtrend from April 11 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that DOT will fall to the 1.272 Fibonacci Extension level or $15.22.

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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