Today, August 13, the price of Polkadot (DOT) is retesting resistance at $22. Yesterday, the cryptocurrency fell to a low above $20 and continued to move below resistance.
Polkadot (DOT) Long-Term Analysis: Bullish
Since August 7, the price of DOT has been fluctuating below the high of $22. Bulls are yet to break above the recent high as the market has reached the overbought zone.
It is likely that the resistance level will now be broken after several attempts. If the bulls break through the $22 high, the price will rise from DOT to $26. This will prompt the cryptocurrency to resume its upward momentum to the previous highs. However, if the upper resistance remains unbroken, the DOT /USD price will continue to move below the resistance level.
Polkadot (DOT) Indicator Analysis
The cryptocurrency is at the 69 level of the Relative Strength Index for period 14. DOT is reaching the overbought area of the market. The altcoin is already above the 80% area of the daily stochastic. The cryptocurrency is in the overbought zone as the upside rally reaches bullish exhaustion. Sellers are expected to emerge in the overbought region.
Major Resistance Levels – $48 and $52
Major Support Levels – $28 and $24
What Is the Next Direction for Polkadot (DOT)?
Polkadot is in a gentle uptrend. DOT has made a series of higher highs and higher lows. The trend line drawn shows the support levels of the price. The upward momentum will continue as long as the uptrend line remains unbroken. However, if the price breaks below the trend line, the current uptrend is considered to be over.
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.
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