Polkadot’s DOT started a fresh increase from the $5.60 support against the US Dollar. It correcting gains, but indicators suggest high chances of a fresh increase.
- DOT is holding the ground above the $6.00 and $5.80 levels against the US dollar.
- The price is trading nicely above the $6.00 support and the 100 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $6.05 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
- The pair could start a strong rally once it clears the $6.40 and $6.50 resistance levels.
Polkadot’s DOT Eyes Fresh Rally
After forming a base above the $5.60 zone, DOT price started a fresh increase. It climbed above the $5.80 and $6.00 levels to move back into a positive zone.
The bulls were able to push the price above the $6.50 level and 100 simple moving average (4-hours). The price traded as high as $6.82 and recently started a downside correction, similar to bitcoin and ethereum. There was a move below the $6.50 level.
Dot price dipped below the 50% Fib retracement level of the upward move from the $5.59 swing low to $6.82 high. However, the bulls are protecting the $6.15 support zone.
There is also a major bullish trend line forming with support near $6.05 on the 4-hours chart of the DOT/USD pair. The bulls are also protecting the 61.8% Fib retracement level of the upward move from the $5.59 swing low to $6.82 high.
It is also above the $6.00 support and the 100 simple moving average (4-hours). An immediate resistance is near the $6.40 level. The main resistance is still near the $6.65 and $6.80 levels.
Source: DOTUSD on TradingView.com
A successful break above $6.65 and a close above $6.80 could start a strong rally. In the stated case, the price could easily rise 10%-15% in the near term.
Dips Limited?
If DOT price fails to continue higher above $6.65 or $6.80, there could be more losses. The first key support is near the $6.05 and $6.00 levels.
The next major support is near the $5.80 level and the 100 simple moving average (4-hours). Any more losses may perhaps open the doors for a move towards the $5.50 support zone.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is now losing momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now just below the 50 level.
Major Support Levels – $6.05, $6.00 and $5.80.
Major Resistance Levels – $6.40, $6.65 and $6.80.
Source: https://newsbtc.com/analysis/dot/dot-price-polkadot-rally-7/