Polkadot (DOT) is struggling to break below the $5.00 level against the US Dollar. The price must settle above the $4.35 and $4.50 resistance levels to start a decent rally.
- DOT stock has been steadily falling below the $5.50 and $5.00 levels against the US Dollar.
- The price is trading below the $5.00 area and the 100-hour simple moving average.
- There was a break above the bearish trend line connecting resistance at $4.18 on the hourly chart of the DOT/USD pair (data source from Kraken).
- The pair could start a good upside move if it settles above $4.35 and then $4.50.
Polkadot price is still in the red zone
In the past few weeks, DOT price has seen a steady decline from well above $6.50. Bitcoin and Ethereum were stable, but Polkadot remained in the red. There was a close below the $5.00 level.
Finally, the price tested the $4.00 area. A low was formed at $4.03 and the price recently started a recovery wave. There was a move above the $4.10 and $4.15 resistance levels. The price rose above the 23.6% Fib retracement level of the downside move from the $4.65 swing high to $4.03 swing low.
We also saw a breakout above the bearish trend line with resistance at $4.18 on the hourly chart of DOT/USD. DOT is now trading below the $4.50 area and the 100 simple moving average (4-hours).
An immediate resistance is near the $4.30 level. The next major resistance is near the $4.35 level or the 50% Fib retracement level of the downside move from the $4.65 swing high to $4.03 low. A successful break above the $4.35 level could start another strong upside wave. In the mentioned case, the price could easily rise towards the $4.50 level in the near term. The next major resistance is near the $5.00 region.
Another drop in the Department of Transportation?
If DOT price fails to start a fresh rise above $4.35, it could start declining again. The first major support is near the $4.15 level.
The next major support is near the $4.10 level, below which the price could drop to $4.00. Any further losses could open the door to a move towards the $3.85 or $3.60 support zone.
Technical indicators
Hourly MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
Hourly Relative Strength Index (RSI) – The RSI for DOT/USD is now above the 50 level.
Key support levels – $4.15 and $4.00.
Key resistance levels – $4.35 and $4.50.
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