Polkadot (DOT) is gaining pace above the $7.50 resistance against the US Dollar. The price is up nearly 15% and might rise further toward $10.00.
- DOT is showing heavy bullish signs from the $6.65 support against the US Dollar.
- The price is trading above the $8.00 zone and the 100 simple moving average (4 hours).
- There was a break above a key bearish trend line with resistance near $7.80 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
- The pair could continue to rally unless the bears are able to defend the $8.88 resistance zone.
Polkadot Price Restarts Rally
After a steady decline, DOT price found support near the $6.65 zone. A low was formed at $6.64 and Polkadot recently started a fresh increase. The price was able to clear the $6.85 and $7.00 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
There was a break above a key bearish trend line with resistance near $7.80 on the 4-hour chart of the DOT/USD pair. The pair even surpassed the 50% Fib retracement level of the downward move from the $9.58 swing high to the $6.64 low.
DOT is now trading above the $8.00 zone and the 100 simple moving average (4 hours). Immediate resistance is near the $8.45 level. The next major resistance is near $8.88 or the 76.4% Fib retracement level of the downward move from the $9.58 swing high to the $6.64 low.
Source: DOTUSD on TradingView.com
A successful break above $8.88 could start another strong rally. In the stated case, the price could easily rally toward $9.50 in the near term. The next major resistance is seen near the $10.00 zone.
Are Dips Supported in DOT?
If DOT price fails to start a fresh increase above $8.45, it could start a fresh decline. The first key support is near the $7.80 level and the same trend line.
The next major support is near the $7.50 level, below which the price might decline to $7.00. Any more losses may perhaps open the doors for a move toward the $6.65 support zone.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major Support Levels – $7.80, $7.500 and $7.00.
Major Resistance Levels – $8.45, $8.88, and $9.50.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.