Polkadot Reaches Bearish Exhaustion, Revisiting Previous Low at $13.73
Polkadot (DOT) downside is likely to reach the low at $14.24 before resuming an upside move. Today, the DOT price has fallen to the low of $14.87 at the time of writing.
In May, the market bottomed at $13.73 as the bulls bought the dips. Today's price action has the bears trying to break below the previous low.
Nonetheless, Since June 22, the crypto price has been in a downward correction, hovering between $13 and $17. Buyers are not yet able to break the range bound level. Meanwhile, on the April 23 downtrend, a retraced candle body tested the 61.8 Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the level of 1.618 Fibonacci extension, or the level of $13.51. From the price action, it appears that the market is approaching the previous low.
Polkadot indicator analysis
The market has fallen to the 36 level of the Relative Strength Index of period 14. DOT price is approaching the oversold region of the market. The daily stochastic has indicated that the DOT price is below the 20% area of the daily stochastic. This indicates that the selling pressure has reached bearish exhaustion. Buyers are expected to emerge in the oversold region.
Major Resistance Levels - $48 and $52
Major Support Levels - $22 and $18
What is the next direction for Polkadot?
Polkadot is making another push to the downside. On June 30 downtrend; a declining candlestick tested the 50% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the 2.0 Fibonacci extension level or to the $14.24 level.
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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