Polkadots DOT started a sharp rise after breaking the $ 5.40 resistance against the US dollar. It’s up over 20% this week and even surged over $ 7.00.
- DOT rose above the $ 5.40 and $ 6.00 levels to start a fresh spike against the US dollar.
- The price is now trading well above $ 7.00 and the simple moving average of 100 (4 hours).
- On the 4-hour chart of the DOT / USD pair (data source from Kraken) there was a break above a large bearish trendline with resistance near USD 5.40.
- The pair was trading as high as $ 7.68 and is currently correcting lower.
Polkadots DOT rallies clearly
This week, DOT provided strong support above the USD 5.00 level. It started a steady spike and broke some key hurdles near $ 5.40 to enter a bullish zone.
It was even above the $ 5.50 level and the simple moving average of 100 (4 hours). More importantly, there was a break on the 4-hour chart for the DOT / USD pair above a large bearish trendline with resistance near $ 5.40.
There was a strong move higher above the $ 6.00 and $ 7.00 levels. The price hit a new monthly high above $ 7.50 at $ 7.68, outperforming Bitcoin and ETH. It is currently correcting lower and trading below $ 7.50. It has already tested the 23.6% fib retracement level of the recent rise from $ 6.25 to $ 7.68.
The first major support on the downside is near the $ 7.00 zone. It is also close to the 50% fib retracement level of the recent spike from $ 6.25 to $ 7.68.
On the upside, the $ 7.50 and $ 7.65 levels are major hurdles. A significant break above the $ 7.65 level could open the doors for a steady rise towards $ 8.00 or $ 8.20 in the coming days.
Dips supported?
If DOT price corrects below $ 7.20, it could see strong buying interest near the $ 7.00 and $ 6.95 levels in the short term.
The next major support is near the USD 6.70 level (a multi-touch zone) and the recent breakout zone. Further losses could require testing of the $ 6.25 support zone.
Technical indicators
4 Hour MACD – The MACD for DOT / USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT / USD is now well above the 60 level.
Major Support Levels – $ 7.20, $ 7.00, and $ 6.95.
Main Resistance Levels – $ 7.50, $ 7.65, and $ 8.00.
