Polkadot (DOT) corrects gains from $7.75 against the US dollar. The price could trigger another surge unless there is a close below $6.30.
- DOT is consolidating gains above the $6.60 support zone against the US dollar.
- The price is trading above the $6.65 zone and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $6.65 on the 4-hour chart of the DOT/USD pair (Kraken data source).
- The pair could start a new rise if the bulls protect the USD 6.65 and USD 6.30 support levels.
Polkadot price holds steady
After forming a base above the $5.50 support, the DOT price started a decent increase. The price was able to break the USD 5.85 and USD 6.00 resistance levels and move towards a positive zone, like that of Bitcoin and Ethereum.
Polkadot even surpassed the $6.65 resistance zone and settled above the 100 simple moving average (4-hours). Finally, the bears appeared near the $7.75 zone. A high was formed near $7.77 and the price is now correcting gains. There was a decline below the $7.20 and $7.00 levels.
DOT fell below the 61.8% Fib retracement level of the upward move from the $6.31 swing low to the $7.77 high. However, it is still above the $6.65 zone and the 100 simple moving average (4-hours).
There is also a major bullish trendline forming with support near $6.65 on the 4-hour chart of the DOT/USD pair. The trendline is close to the 76.4% Fib retracement level of the upward move from the $6.31 swing low to the $7.77 high.
Source: DOTUSD on TradingView.com
The immediate resistance is near the $7.05 level. The next major resistance is near $7.20. A successful break above $7.20 could be the start of another strong rally. In the mentioned case, the price could easily rise to $7.75 in the short term. The next major resistance can be seen near the $8.00 zone.
More losses in DOT?
If the DOT price fails to start a new increase above $7.05, it could continue to decline. The first major support is near the $6.65 level and trendline.
The next major support is near the USD 6.30 level, below which the price could fall to USD 5.70. Any further losses could perhaps open the doors for a move towards the $5.00 support zone.
Technical indicators
4-hour MACD – The MACD for DOT/USD is now gaining strength in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.
Major support levels – $6.65, $6.30 and $5.70.
Major resistance levels – $7.05, $7.20 and $7.75.
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