Polkadot’s DOT is rebounding higher from the $3.92 support against the US dollar. The price could gain speed if it crosses the USD 4.20 and USD 4.35 resistance levels.
- DOT is slowly moving higher above the resistance zone at $4.05 against the US dollar.
- The price is trading just above the $4.15 zone and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $4,175 on the 4-hour chart of the DOT/USD pair (Kraken data source).
- The pair could gain bullish momentum if there is a close above $4.20 and $4.35.
Polkadot’s DOT Price faces a tough task
After a sharp decline, the DOT price found support near the $3.90 zone. A low is formed near $3.91 and the price is now trying to make a new rise, just like Bitcoin and Ethereum.
There was a break above the $4.00 and $4.05 resistance levels. The price surpassed the 23.6% Fib retracement level of the downward move from the $4.80 swing high to the $3.91 low. DOT is now trading just above the $4.15 zone and the 100 simple moving average (4 hours).
Immediate resistance is near the $4.20 level. There is also a major bearish trendline forming with resistance near $4,175 on the 4-hour chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
The next major resistance is near $4.35. It is close to the 50% Fib retracement level of the downward move from the $4.80 swing high to the $3.91 low. A successful break above $4.35 could trigger a strong rally. In the said case, the price could easily rise to $4.80 in the coming days. The next major resistance is seen near the $5.0 zone.
Another drop?
If the DOT price does not remain above $4.20 or $4.35, it could trigger another decline. The first major support is near the $4.05 level.
The next major support is near the USD 3.90 level and the latest low, below which the price could fall to USD 3.75. Any further losses could perhaps open the doors for a move towards the $3.50 support zone.
Technical indicators
4-hour MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major support levels – $4.05, $3.90 and $3.75.
Major resistance levels – $4.20, $4.35 and $4.80.