Polkadot Faces Stiff Resistance at $42 High, May Resume Uptrend
Oct 30, 2021 at 09:55 //
NewsThe price of Polkadot (DOT) has resumed an upward movement after the recent collapse. The current uptrend has reached the high of $42.
On October 26, the cryptocurrency reached the high of $45.76, but the bulls failed to keep the price above the resistance of $46. As a result, the price of DOT fell to a low of $40 as the bulls bought the dips.
The altcoin has started a new uptrend to regain the previous highs. DOT/USD will rally to $52 if the bulls overcome the current resistance. In the meantime, Polkadot is trading in the overbought region of the market. It is likely that sellers will appear in the overbought region. Therefore, the upside move is doubtful. The altcoin is facing rejection at the minor resistance of $42 at the time of writing.
Polkadot indicator analysis
The cryptocurrency is at the 57 level of the Relative Strength Index for period 14. The altcoin is in the bullish trend zone and above the 50 centre line. The moving averages of the 21-day line and the 50-day line are up, indicating an uptrend. The altcoin is below the 80% area of the daily stochastic. DOT USD is in a bearish momentum.
Technical indicators:
Major Resistance Levels - $52 and $56
Major Support Levels - $28 and $24
What is the next direction for Polkadot?
Polkadot is in an uptrend. The current uptrend is encountering rejection at the $42 high. The upward movement will resume when the bulls break the minor resistance. In the meantime, the uptrend from October 28 has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that the price will rise to the 1.618 Fibonacci extension level or $45.02.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow