Polkadot’s DOT started a fresh increase from the $6.00 support against the US Dollar. It is consolidating gains and might start a fresh rally above $6.80.
- DOT is holding the ground above the $6.00 and $6.20 levels against the US dollar.
- The price is trading above the $6.30 support and the 100 simple moving average (4-hours).
- There was a break above a key bearish trend line with resistance near $6.20 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 $6.80 and $7.00 resistance levels.
Polkadot’s DOT Eyes Fresh Surge
After forming a base above the $6.00 zone, DOT price started a fresh increase. It climbed above the $6.05 and $6.10 levels to move back into a positive zone.
The bulls were able to push the price above the $6.20 level and 100 simple moving average (4-hours). Besides, there was a break above a key bearish trend line with resistance near $6.20 on the 4-hours chart of the DOT/USD pair.
A high is formed near $6.90 and the price is now consolidating gains, similar to bitcoin and ethereum. There was a move below the $6.70 level. It declined below the 23.6% Fib retracement level of the upward move from the $6.03 swing low to $6.90 high.
Dot price is now trading above the $6.30 support and the 100 simple moving average (4-hours). An immediate resistance is near the $6.80 level. The main resistance is near the $6.95 and $7.00 levels.
Source: DOTUSD on TradingView.com
A successful break above $6.80 and a close above $7.00 could start a strong rally. In the stated case, the price could easily rally towards $7.60 or even $7.80.
Dips Limited?
If DOT price fails to continue higher above $6.80 or $6.95, there could be a downside correction. The first key support is near the $6.45 and $6.48 levels.
The next major support is near the $6.35 level or the 61.8% Fib retracement level of the upward move from the $6.03 swing low to $6.90 high. Any more losses may perhaps open the doors for a move towards the $6.00 support zone.
Technical Indicators
4-Hours 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.
Major Support Levels – $6.45, $6.35 and $6.00.
Major Resistance Levels – $6.80, $6.95 and $7.00.
