DOT Polkadot started a new rally from the $5.60 support against the US Dollar. It corrects the results, but the indicators suggest a high probability of adding fresh.
- DOT is holding ground above the $6.00 and $5.80 levels against the US dollar.
- The price is trading well above the $6.00 support and the 100 moving average (4 hours).
- There is a major bullish trend line formed with support near $6.05 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
- The pair could start a strong rally if 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, the price of DOT started to increase fresh. It rose above the $5.80 and $6.00 levels to move back into the positive zone.
Bulls can push the price above the $6.50 level and the 100 moving average (4 hours). The price traded up to $6.82 and recently started a downward correction, similar to bitcoin and ethereum. There is a move below the $6.50 level.
The Dot price dipped below the 50% Fib retracement level of the upward move from the $5.59 swing to the $6.82 high. However, 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-hour 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 to the $6.82 high.
It is also above the $6.00 support and the 100 simple moving average (4-hour). 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 that case, prices could easily go up 10%-15% in the near term.
Dips Limited?
If the DOT price fails to hold higher above $6.65 or $6.80, further losses are likely. 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 moving average (4 hours). Any losses could open the door to a move to the $5.50 support zone.
Technical Indicators
4-Hour MACD – MACD for DOT/USD is currently losing momentum in the bullish zone.
4-Hour RSI (Relative Strength Index) – The RSI for DOT/USD is currently below the 50 level.
Key Support Levels – $6.05, $6.00 and $5.80.
Key Resistance Levels – $6.40, $6.65 and $6.80.