Polkadot’s DOT moves up from the $5.0 support against the US dollar. The price could rise if it clears the $5.30 and $5.40 resistance levels.
- DOT is slowly moving higher above the $5.15 resistance zone against the US dollar.
- The price is trading above the $5.20 zone and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near USD 5.10 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a close above the USD 5.30 resistance.
Polkadot’s DOT price is aiming higher
After a sharp decline, the DOT price found support near the $5.0 zone. A low is formed near $4.98 and the price is now trying to rise again, similar to Bitcoin and Ethereum.
There was a break above the $5.15 and $5.20 resistance levels. A major bullish trendline is also forming with support near USD 5.10 on the 4-hour chart of the DOT/USD pair. The pair is now trading above the $5.20 zone and the 100 simple moving average (4 hours).
Immediate resistance is near the $5.30 level. It is near the 50% Fib retracement level of the downward move from the $5.62 swing high to the $4.98 low.
Source: DOTUSD at TradingView.com
The next major resistance is near $5.40 or the 61.8% Fib retracement level of the downward move from the $5.62 swing high to the $4.98 low. A successful break above $5.40 could start a strong rally. In the said case, the price could easily move towards $5.60 in the coming sessions. The next major resistance is seen near the $6.0 zone.
dips limited?
If the DOT price fails to continue above $5.30 or $5.40, it could trigger a downside correction. The first major support is near the $5.15 level and the 100 simple moving average (4 hours).
The next key support is near the $5.10 level and trendline, below which the price could drop as low as $5.00. More losses may perhaps open the doors for a move towards the $4.80 support zone in the coming sessions.
Technical indicators
4am 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.
Main Support Levels – $5.15, $5.10 and $5.00.
Main resistance levels – $5.30, $5.40 and $5.60.