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.
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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.
