As a seasoned crypto investor with a few years of experience under my belt, I’ve seen the market go through its fair share of ups and downs. Currently, I’m keeping a close eye on Polkadot (DOT) as it corrects gains from the $7.5 resistance against the US Dollar.
Polkadot (DOT) is correcting gains from the $7.5 resistance against the US Dollar. The price could start another increase if it stays above the $6.75 support.
- DOT gained pace and tested the $7.5 resistance level against the US Dollar.
The price is trading above the $7.00 zone and the 100 simple moving average (4 hours).
There is a short-term expanding triangle forming with resistance at $7.50 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
The pair could continue to decline if it fails to stay above the $6.75 support.
Polkadot Price Holds Support
As a crypto investor, I’ve observed DOT‘s price forming a solid foundation above the $6.00 mark. Subsequently, it began an upward trend, surmounting various obstacles around $6.75 and reaching new heights beyond $7.25. The peak was reached at $7.46, but now, similar to Ethereum and Bitcoin, DOT’s price is correcting its gains.
In simpler terms, the price dipped beneath the $7.25 mark, which is a significant support level. Additionally, it fell below the 23.6% mark of the Fibonacci retracement, which represents a potential level of rebound in an uptrend from the swing low at $6.03 to the peak at $7.46.
Currently, DOT is trading above the $7.00 mark and lies above its 100-simple moving average on the 4-hour chart. The immediate resistance for DOT can be found around $7.25. Further up, the significant resistance level is situated at $7.50. Additionally, an expanding triangle pattern has emerged in the short term on the same chart, with $7.50 serving as the resistance line for this pattern in the DOT/USD pair.
If the price breaks through $7.50 successfully, it may trigger a robust surge towards $8.00 in the imminent future. Further up, around $8.80, lies significant resistance that could halt this upward trend.
More Downsides in DOT?
If the price of DOT doesn’t rise above $7.25 to begin a new uptrend, it may instead descend further. The initial support lies around $7.00 and is also where we find the 4-hour simple moving average.
The price could encounter significant resistance around the $6.75 mark or the 50% Fibonacci retracement point of the rally from $6.03 to $7.46. If it fails to hold above this level, a drop to $6.50 may follow. Further declines might lead to a test of the support areas at $6.10 or even $6.00.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is now losing momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.
Major Support Levels – $7.00, $6.75 and $6.50.
Major Resistance Levels – $7.25, $7.50, and $8.00.
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2024-05-08 08:46