Polkadot (DOT) is correcting gains due to $7.5 resistance against the US dollar. If the price stays above the $6.75 support, another hike could begin.
- DOT picked up the pace and tested the $7.5 resistance level against the US dollar.
- The price is trading in the $7.00 area and above the 100 simple moving average (4-hours).
- On the 4-hours chart of the DOT/USD pair, there is a short-term expanding triangle with resistance forming at $7.50 (data source from Kraken).
- Failure to hold above the $6.75 support level could lead to the pair continuing to fall.
Polkadot price maintains support
After forming a base above the $6.00 level, DOT price began a significant rise. It broke through many hurdles near $6.75 and even surged above $7.25. A high was made at $7.46 and the price is now correcting gains like Ethereum and Bitcoin.
There was a move below the $7.25 support zone. The price fell below the 23.6% Fib retracement level, rising from the $6.03 swing low to the $7.46 high.
DOT is currently trading above the $7.00 area and the 100 simple moving average (4-hours). Immediate resistance is near the $7.25 level. The next major resistance is near $7.50. There is also a short-term expanding triangle forming resistance at $7.50 on the 4-hours chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
A successful break above $7.50 could start another strong rally. If stated, the price could easily rise to $8.00 in the short term. The next major resistance is seen near the $8.80 area.
Are there any more downsides to DOT?
If DOT price fails to initiate a new rally above $7.25, it may continue to decline. The first major support is near the $7.00 level and the 100 simple moving average (4-hours).
The next major support is near the $6.75 level or the 50% Fib retracement level of the rise from the $6.03 swing low to the $7.46 high, below which the price may fall towards $6.50. Any further losses could open the door to a move to $6.10 support or $6.00.
technical indicators
4-Hour MACD – The MACD for DOT/USD is now losing momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.
Key support levels – $7.00, $6.75 and $6.50.
Key resistance levels – $7.25, $7.50, $8.00.
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