Polkadot (DOT) is gaining pace above the USD 7.50 resistance against the US Dollar. The price is up almost 15% and could rise further towards $10.00.
- DOT is showing heavy bullish signals from the $6.65 support against the US dollar.
- The price is trading above the $8.00 zone and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance around $7.80 on the 4-hour chart of the DOT/USD pair (Kraken data source).
- The pair could continue to rise unless the bears are able to defend the $8.88 resistance zone.
Polkadot Price restarts rally
After a steady decline, DOT price found support near the $6.65 zone. A low was formed at $6.64 and Polkadot recently started a new increase. The price was able to break the USD 6.85 and USD 7.00 resistance levels and move towards a positive zone, like that of Bitcoin and Ethereum.
There was a break above a key bearish trendline with resistance around $7.80 on the 4-hour chart of the DOT/USD pair. The pair even surpassed the 50% Fib retracement level on the downside move from the $9.58 swing high to the $6.64 low.
DOT is now trading above the $8.00 zone and the 100 simple moving average (4 hours). The immediate resistance is near the $8.45 level. The next major resistance is near $8.88 or the 76.4% Fib retracement level of the downward move from the $9.58 swing high to the $6.64 low.
Source: DOTUSD on TradingView.com
A successful break above $8.88 could herald another strong rally. In the mentioned case, the price could easily rise to $9.50 in the short term. The next major resistance is seen near the $10.00 zone.
Are dips supported in DOT?
If the DOT price fails to start a new increase above $8.45, it could trigger a new decline. The first major support is near the $7.80 level and the same trendline.
The next major support is near the USD 7.50 level, below which the price could fall to USD 7.00. Any further losses could perhaps open the doors for a move towards the $6.65 support zone.
Technical indicators
4-hour MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major support levels – USD 7.80, USD 7,500 and USD 7.00.
Major resistance levels – $8.45, $8.88 and $9.50.
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