Polkadot (DOT) is trending upwards above the $8.80 resistance level against the US dollar. If the price settles above the $10 barrier, the rally could be extended.
- DOT is trending upwards above the $8.50 and $8.80 levels against the US dollar.
- The price is trading in the $9.00 area and above the 100 simple moving average (4-hours).
- On the 4-hours chart of the DOT/USD pair, there is a major bullish trendline forming around support at $9.20 (data source from Kraken).
- If the bears are unable to defend the $10 resistance zone, the pair may continue to rise.
Polkadot price begins rally again
DOT price formed a base above the $7.50 level and then began a steady rise. It rose more than 25% in a matter of days, sometimes even outperforming Ethereum and Bitcoin.
There was a clear move above the $8.50 and $8.80 resistance levels. The price even traded close to the $10.00 level. A new multi-week high was formed near $9.89 and the price is currently on an upward trend. The bullish move from the $8.57 swing low to the $9.89 high remains above the 23.6% Fib retracement level.
DOT is currently trading above the $9.00 area and the 100 simple moving average (4-hours). There is also a major bullish trend line forming with support at $9.20 on the 4-hours chart of the DOT/USD pair. The trend line is close to the 50% Fib retracement level rising from the $8.57 swing low to the $9.89 high.
Source: DOTUSD on TradingView.com
Immediate resistance is near the $9.85 level. The next major resistance is near $10.00. A successful break above $10.00 could start another strong rally. If stated, the price could easily rise to $12.00 in the short term. The next major resistance is seen near the $13.50 area.
Are dips supported in DOT?
If DOT price fails to start a new rally above $10.00, a downward correction could begin. The first major support is near the $9.50 level.
The next major support is near the $9.20 level, below which the price may fall towards $8.80. Any further losses could open the door for a move towards $8.50 support.
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 – $9.50, $9.20 and $8.50.
Key resistance levels – $9.85, $10.00, $12.00.
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