Polkadot (DOT) is gaining pace above the USD 5.25 resistance against the US dollar. The price could further rise towards the USD 5.85 and USD 6.00 levels.
- DOT is gaining pace above the USD 5.25 resistance zone against the US dollar.
- The price is trading above the $5.30 zone and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $5.55 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 $5.55 and $5.60.
Polkadot price regains strength
After consolidating above the $5.00 support, the DOT price started a decent increase. The price was able to break the USD 5.20 and USD 5.25 resistance levels and move towards a positive zone, like that of Bitcoin and Ethereum.
Polkadot managed to break the 100 simple moving average (4 hours) and tested the resistance at $5.60. A high is formed near USD 5.58 and the price is now consolidating gains. It is up almost 5% and is showing signs of more gains in the coming sessions.
The DOT price is now trading above the $5.30 zone and the 100 simple moving average (4 hours). The immediate resistance is near the $5.55 level. There is also a major bearish trendline forming with resistance around $5.55 on the 4-hour chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
The next major resistance is near $5.60. A successful break above $5.60 could herald another strong rally. In the mentioned case, the price could easily rise to $5.85 in the short term. The next major resistance is seen near the $6.00 zone.
Are dips supported in DOT?
If the DOT price does not remain above $5.55 or $5.60, it could trigger a downward correction. The first major support is near the $5.35 level.
The next major support is near the $5.30 level or the 61.8% Fib retracement level of the upward move from the $5.11 swing low to the $5.58 high, below which the price could drop to $5 ,10. Any further losses could perhaps open the doors for a move towards the $5.00 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 – $5.30, $5.10 and $5.00.
Major resistance levels – $5.55, $5.60 and $6.00.