Polkadot (DOT) is consolidating gains above the $7.40 area against the US dollar. Removal of the $7.70 resistance level could push the price higher again.
- DOT picked up the pace and tested the $7.70 resistance level against the US dollar.
- The price is trading above the $7.20 area and the 100-hour simple moving average.
- The hourly chart of the DOT/USD pair has a key bullish trendline with support at $7.40 (data source from Kraken).
- Failure to hold above the $7.20 support level could lead to the pair continuing to rise.
Polkadot price maintains support
DOT price formed a base above the $6.80 level and then began a significant rise. It broke through many hurdles near $7.20 and even surged above $7.65. A high was formed at $7.69 and the price is now consolidating gains like Ethereum and Bitcoin.
There was a move below the $7.50 support zone. The price fell below the 23.6% Fib retracement level, rising from the $6.91 swing low to the $7.69 high.
DOT is currently trading in the $7.20 area and above the 100 simple moving average (4-hours). On the hourly chart of the DOT/USD pair, there is also a major bullish trend line forming with support at $7.40. Immediate resistance is near the $7.70 level.
The next major resistance is near $7.80. A successful break above $7.80 could trigger another strong rally. If stated, the price could easily rise to $8.20 in the short term. The next major resistance can be seen near the $8.50 area.
Are there any more downsides to DOT?
If DOT price fails to start a new rally above $7.70, it may continue to decline. The first major support is near the $7.40 level and the trendline.
The next major support is near $7.30, which is the 100 simple moving average (4-hours) or the 50% Fib retracement level of the rise from the $6.91 swing low to the $7.69 high, below which a decline could hit $7.00. Any further losses could open the door to a move to $6.90 support or $6.80.
technical indicators
Hourly MACD – The MACD for DOT/USD is now gaining momentum in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for DOT/USD is now above the 50 level.
Key support levels – $7.40, $7.30 and $7.10.
Key resistance levels – $7.70, $7.80, $8.20.