Polkadot (DOT) is trending upwards above the $7.50 resistance level against the US dollar. The price is up almost 15% and could rise further to $10.00.
- DOT is showing strong bullish signs with support at $6.65 against the US dollar.
- The price is trading in the $8.00 area and above the 100 simple moving average (4-hours).
- On the 4-hours chart of the DOT/USD pair (data source from Kraken), a breakout occurred above the main bearish trendline with resistance near $7.80.
- If the bears are unable to defend the $8.88 resistance area, the pair may continue to rise.
Polkadot price begins rally again
DOT price, which continued to decline, found support near $6.65. A low was formed at $6.64 and Polkadot recently started a new rise. The price was able to clear the $6.85 and $7.00 resistance levels to move into positive territory like Bitcoin and Ethereum.
A breakout occurred above the main bearish trendline with resistance near $7.80 on the 4-hours chart of the DOT/USD pair. The pair broke above the 50% Fib retracement level moving down from the $9.58 swing high to the $6.64 low.
DOT is currently trading above the $8.00 area and the 100 simple moving average (4-hours). Immediate resistance is near the $8.45 level. The next major resistance is the 76.4% Fib retracement level near $8.88 or a downside 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. If stated, the price could easily rise to $9.50 in the short term. The next major resistance appears near the $10.00 area.
Are dips supported in DOT?
If DOT price fails to start a new advance above $8.45, a new decline could begin. The first major 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 may fall towards $7.00. Any further losses could open the door for a move towards the $6.65 support area.
technical indicators
4-Hour MACD – The MACD for DOT/USD is now gaining momentum in bullish territory.
4-Hour RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Key support levels – $7.80, $7.500 and $7.00.
Key resistance levels – $8.45, $8.88, $9.50.
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