Polkadot’s DOT started a fresh increase above the $6.00 resistance against the US Dollar. The price is now approaching a major break and might eye a test of $7.
- DOT is slowly moving higher above the $6.0 resistance zone against the US dollar.
- The price is trading near the $6.20 zone and the 100 simple moving average (4-hours).
- There was a break above a major bearish trend line with resistance near $6.12 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a close above the $6.20 resistance.
Polkadot’s DOT Price Gains Momentum
After forming a base above the $5.80 zone, DOT price started a fresh increase. It climbed above the $5.88 and $5.95 levels to move back into a positive zone, similar to bitcoin and ethereum.
The bulls were able to push the price above the $6.00 level and the 100 simple moving average (4-hours). There was a clear move above the 23.6% Fib retracement level of the downward move from the $6.71 swing high to $5.75 low.
Besides, there was a break above a major bearish trend line with resistance near $6.12 on the 4-hours chart of the DOT/USD pair. The price is now trading near the $6.20 zone and the 100 simple moving average (4-hours).
Source:
An immediate resistance is near the $6.20 level. It is near the 50% Fib retracement level of the downward move from the $6.71 swing high to $5.75 low. A successful break above $6.20 and a close above $6.25 could start a strong rally. In the stated case, the price could easily rally towards $6.50 or even $6.80 in the coming sessions.
Dips Limited?
If DOT price fails to continue higher above $6.15 or $6.20, it could start a downside correction. The first key support is near the $6.05 level.
The next major support is near the $6.00 level, below which the price might decline to $5.75. Any more losses may perhaps open the doors for a move towards the $5.50 support zone in the coming sessions.
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 – $6.05, $6.00 and $5.75.
Major Resistance Levels – $7.20, $7.50 and $7.80.