The price of Polkadot (DOT) is in a downtrend after the market fell to a low of $25. Bears are trying to push the altcoin to the previous low of $23.95 set on December 4.
After the price slump, selling pressure eased and Polkadot started to move above the $23.95 support. Within the two-week price fluctuation, the bears tested the current support twice but failed to crash the cryptocurrency. The bulls bought the dips as the price corrected higher, but were stalled. Polkadot has already fallen into oversold territory after the price collapse. It is unlikely that there will be any further downside as the market has bottomed at $23.
Polkadot indicator analysis
Polkadot is at level 33 on the Relative Strength Index for the period of 14. The RSI is still above the oversold zone, which is due to price volatility. Buyers are expected to emerge to push prices higher. The cryptocurrency price is below the 50% area of the daily stochastic. The market is in a bearish momentum.
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
On the 4-hour chart, Polkadot is in a range-bound move. The downtrend has eased as the price fluctuates back above current support. DOT is fluctuating between the $24 and $30 price levels, and selling pressure will resume if price falls below current support. Likewise, the downtrend will resume if the price crosses above the $30 high.
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.