Polkadot Retraces on the Downside, Larger Move Likely Soon
Oct 16, 2021 at 08:47 //
NewsThe price of Polkadot (DOT) has retreated over the past two days after reaching a high of $43.20. Buyers were unable to break above the resistance zone at $44.
The altcoin is falling back from the recent high and is likely to hit the low of $39. The uptrend will resume if the price finds support above the recent low. On the upside, the market will go up to $50 if the bulls break the resistance at $44.
However, Polkadot is likely to face resistance at the $48 high. The bulls have failed to break above the $48 resistance since April. Moreover, the cryptocurrency is approaching the overbought zone of the market. Meanwhile, altcoin is struggling with the initial resistance at $44. Polkadot could be contained between $39 and $44 if the bulls fail to break the initial resistance at $44.
Polkadot indicator analysis
DOT price has risen to the level 64 of the Relative Strength Index of the period 14. The cryptocurrency is in the bullish trend zone and approaching the overbought zone. The price bars are above the moving averages, which indicates further upward movement. The altcoin is on the retreat as it is below the 80% range of the daily stochastic. The market is in a bearish momentum.
Technical indicators:
Major Resistance Levels - $48 and $52
Major Support Levels - $24 and $20
What is the next direction for Polkadot?
On the 4-hour chart, Polkadot has risen back above the $36 support to resume the uptrend. The altcoin has retreated after rejecting the $44 resistance zone. Meanwhile, the uptrend from October 13 has shown a candlestick testing the 50% Fibonacci retracement level. The retracement suggests that the price of DOT will rise to the 2.0 Fibonacci extension level or $50.59.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow