29 January 2024
Polkadot (DOT) is gaining pace above the $6.80 resistance against the US Dollar. The price could gain bullish momentum if it clears the $7.28 resistance.
DOT is trading in a positive zone from 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 trend line with resistance near $6.50 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
The pair could continue to rise unless the bears are able to defend the $7.28 resistance zone.
Polkadot Price Restarts Increase
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 fresh increase. The price was able to clear the $6.20 and $6.50 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
There was a break above a key bearish trend line with resistance near $6.50 on the 4-hour chart of the DOT/USD pair. The pair even surpassed the 23.6% Fib retracement level of 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). 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 start another strong rally. In the stated case, the price could easily rally toward $8.00 in the near term. The next major resistance is seen near the $8.50 zone.
Are Dips Supported in DOT?
If DOT price fails to start a fresh increase above $7.28, it could start a fresh decline. The first key support is near the $6.60 level.
The next major support is near the $6.00 level, below which the price might decline to $5.65. Any more losses may perhaps open the doors for a move toward the $5.32 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 – $6.60, $6.00 and $5.65.
Major Resistance Levels – $7.28, $8.00, and $8.50.