DOT Price (Polkadot) Indicators Suggest Strong Case For Fresh Rally

Polkadot’s DOT started a fresh increase from the $5.60 support against the US Dollar. It correcting gains, but indicators suggest high chances of a fresh increase. DOT is holding the ground above the $6.00 and $5.80 levels against the US dollar. The price is trading nicely above the $6.00 support and the 100 simple moving average (4-hours). There is a major bullish trend line forming with support near $6.05 on the 4-hours chart of the DOT/USD pair (data source from Kraken). The pair could start [...]

Polkadot’s DOT started a fresh increase from the $5.60 support against the US Dollar. It correcting gains, but indicators suggest high chances of a fresh increase.

• DOT is holding the ground above the $6.00 and $5.80 levels against the US dollar.
• The price is trading nicely above the $6.00 support and the 100 simple moving average (4-hours).
• There is a major bullish trend line forming with support near $6.05 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
• The pair could start a strong rally once it clears the $6.40 and $6.50 resistance levels.

Polkadot’s DOT Eyes Fresh Rally

After forming a base above the $5.60 zone, DOT price started a fresh increase. It climbed above the $5.80 and $6.00 levels to move back into a positive zone.

The bulls were able to push the price above the $6.50 level and 100 simple moving average (4-hours). The price traded as high as $6.82 and recently started a downside correction, similar to bitcoin and ethereum. There was a move below the $6.50 level.

Dot price dipped below the 50% Fib retracement level of the upward move from the $5.59 swing low to $6.82 high. However, the bulls are protecting the $6.15 support zone.

There is also a major bullish trend line forming with support near $6.05 on the 4-hours chart of the DOT/USD pair. The bulls are also protecting the 61.8% Fib retracement level of the upward move from the $5.59 swing low to $6.82 high.

It is also above the $6.00 support and the 100 simple moving average (4-hours). An immediate resistance is near the $6.40 level. The main resistance is still near the $6.65 and $6.80 levels.

Source: DOTUSD on TradingView.com

A successful break above $6.65 and a close above $6.80 could start a strong rally. In the stated case, the price could easily rise 10%-15% in the near term.

Dips Limited?

If DOT price fails to continue higher above $6.65 or $6.80, there could be more losses. The first key support is near the $6.05 and $6.00 levels.

The next major support is near the $5.80 level and the 100 simple moving average (4-hours). Any more losses may perhaps open the doors for a move towards the $5.50 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now losing momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now just below the 50 level.

Major Support Levels – $6.05, $6.00 and $5.80.

Major Resistance Levels – $6.40, $6.65 and $6.80.

Source: NewsBTC