As a seasoned crypto investor with a knack for spotting trends and patterns, I find myself at a crossroads with Polkadot (DOT). The current price action below $5.00 against the US Dollar is reminiscent of a rollercoaster ride, albeit one that’s not as thrilling as I’d hope.
Polkadot‘s (DOT) value is finding it tough to stay above the $5.00 mark versus the U.S. dollar. For a significant upward movement, it needs to surpass the resistance at both $4.35 and $4.50 levels first.
- DOT declined steadily below the $5.50 and $5.00 levels against the US Dollar.
The price is trading below the $5.00 zone and the 100-hourly simple moving average.
There was a break above a connecting bearish trend line with resistance at $4.18 on the hourly chart of the DOT/USD pair (data source from Kraken).
The pair could start a decent upward move if it settles above $4.35 and then $4.50.
Polkadot Price Remains In The Red Zone
Over the last several weeks, the price of DOT has consistently dropped, moving downward from over $6.50. While Bitcoin and Ethereum stayed relatively steady, Polkadot continued to be in the negative territory. The price dipped below the $5.00 mark, indicating a close at this level.
Ultimately, the cost dipped to the $4.00 region and reached a low at $4.03. However, it has since begun an upward trend, surpassing previous resistance levels at $4.10 and $4.15. Additionally, the price has advanced beyond the 23.6% Fibonacci retracement level of the decline from the high at $4.65 to the low at $4.03.
Additionally, there was a rise exceeding a bearish linking trend line offering resistance at approximately $4.18 on the hourly chart of the DOT/USD pair. Currently, the DOT is trading below the $4.50 region and lower than the 100 simple moving average (4 hours).
Immediately, the price is facing a significant barrier around $4.30. If it surpasses this level, the next notable resistance lies at roughly $4.35 or the 50% Fibonacci retracement point of the fall from the peak at $4.65 to the trough at $4.03. Overcoming $4.35 might trigger another robust upward trend, potentially pushing the price up to around $4.50 in the short term. Further resistance is anticipated near the $5.00 area.
Another Decline in DOT?
If DOT‘s price doesn’t manage to rise beyond $4.35, there’s a possibility it might initiate another drop instead. The initial support level would be around $4.15.
In simpler terms, if the price doesn’t hold above $4.10, it could potentially drop down to $4.00. Further drops might trigger a fall towards the $3.85 support area or even as low as $3.60.
Technical Indicators
Hourly MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major Support Levels – $4.15 and $4.00.
Major Resistance Levels – $4.35 and $4.50.
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2024-09-03 08:10