The price of Polkadot (DOT) is in a downtrend as the cryptocurrency has dropped below the previous low at $14.18. Today, the market has dropped to the low of $13.95 by the time of writing.
The bears have undercut the previous support at $14.18. The previous support from April 30 held last week before the latest dip.
The altcoin continues to fall as the bulls failed to overcome the resistance at $16. On May 4, the price of DOT rose to a high of $16.34, but was pushed back. Since May 5, DOT/USD has been in a downward movement. Today, the bears undercut the current support. On the downside, the cryptocurrency is likely to fall further to the low of $11. Meanwhile, the altcoin has fallen to the low of $13.95 at the time of writing.
Polkadot indicator analysis
The crypto is at level 34 of the Relative Strength Index for period 14. The altcoin is in a downtrend as it approaches the oversold region. DOT is below the moving averages as the altcoin continues to fall. It is below the 20% range of the daily stochastic. This indicates that the market has reached the oversold region.
Major Resistance Levels – $52 and $56
Major Support Levels – $28 and $24
What is the next direction for Polkadot?
DOT/USD has continued its downward movement after the bears undercut the current support. Meanwhile, on April 30, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that the price of DOT will fall to the Fibonacci extension level of 1.618 or the level of $11.32.
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.