Polkadot (DOT) is gaining pace above the USD 6.80 resistance against the US Dollar. The price could gain bullish momentum if the USD 7.28 resistance is cleared.
- DOT is trading in a positive zone against the $6.00 support against the US dollar.
- The price is trading near the $7.00 zone and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance around $6.50 on the 4-hour chart of the DOT/USD pair (Kraken data source).
- The pair could continue to rise unless the bears are able to defend the $7.28 resistance zone.
Polkadot Prize is restarting
After a steady decline, DOT price found support near the $6.00 zone. A low was formed at $5.97 and Polkadot recently started a new increase. The price was able to break the USD 6.20 and USD 6.50 resistance levels and move towards a positive zone, like that of Bitcoin and Ethereum.
There was a break above a key bearish trendline with resistance around $6.50 on the 4-hour chart of the DOT/USD pair. The pair even surpassed the 23.6% Fib retracement level on the downward move from the $8.58 swing high to the $5.97 low.
DOT is now trading near the $7.00 zone and the 100 simple moving average (4 hours). The immediate resistance is near the $7.20 level. The next major resistance is near $7.28 or the 50% Fib retracement level of the downward move from the $8.58 swing high to the $5.97 low.
Source: DOTUSD on TradingView.com
A successful break above $7.28 could herald another strong rally. In the mentioned case, the price could easily rise towards $8.00 in the short term. The next major resistance is seen near the $8.50 zone.
Are dips supported in DOT?
If the DOT price fails to start a new increase above $7.28, it could trigger a new decline. The first major support is near the $6.60 level.
The next major support is near the USD 6.00 level, below which the price could drop to USD 5.65. Any further losses could perhaps open the doors for a move towards the $5.32 support zone.
Technical indicators
4-hour MACD – The MACD for DOT/USD is now gaining strength in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major support levels – $6.60, $6.00 and $5.65.
Major resistance levels – $7.28, $8.00 and $8.50.
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