Polkadot (DOT) is correcting gains from the $7.5 resistance against the US Dollar. The price could start another rise if it sustains 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 feed from Kraken).
- The pair could fall further if it fails to hold above the $6.75 support.
Polkadot price maintains support
After forming a base above the $6.00 level, DOT price started a decent rise. It broke many obstacles near $6.75 and even broke above $7.25. A high of $7.46 was formed and the price is now correcting gains, like Ethereum and Bitcoin.
There was a move below the $7.25 support zone. The price fell below the 23.6% Fibonacci retracement level of the upward move from the low of $6.03 to the high of $7.46.
DOT is now trading above the $7.00 zone and the 100 simple moving average (4-hours). The immediate resistance is near the $7.25 level. The next major resistance is near $7.50. There is also a short-term expanding triangle forming with resistance at $7.50 on the 4-hour chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
A successful break above $7.50 could start another strong rally. In the indicated case, the price could easily rise towards $8.00 in the short term. The next major resistance is seen near the $8.80 area.
More disadvantages in DOT?
If DOT price fails to start a new rise above $7.25, it could continue to decline. The first key support is near the $7.00 level and the 100 simple moving average (4-hours).
The next major support is near the $6.75 level or the 50% retracement level of the upward move from the low of $6.03 to the high of $7.46, below which the price could fall to $6.50 . Any further losses could perhaps open the doors to a move towards the $6.10 or $6.00 support zone.
Technical Indicators
4-hour MACD – The MACD for DOT/USD is now losing momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.
Main support levels: $7.00, $6.75 and $6.50.
Main resistance levels: $7.25, $7.50 and $8.00.
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