Insights on Polkadot’s DOT Price Momentum
Polkadot’s native cryptocurrency, DOT, has been steadily progressing from the $5.0 benchmark against the US Dollar. An anticipated rally may ensue if the currency can break the $5.30 and $5.40 resistance levels, which would demonstrate significant price strength and bullish momentum for the DOT/USD market.
DOT’s Movement and Resistance Levels
Recent trends suggest that DOT has been incrementally moving above the $5.15 resistance zone against the US Dollar. Other invaluable insights gleaned from the currency’s performance include:
- DOT’s price is now trading above the critical $5.20 zone.
- The currency has also surpassed the 100 simple moving average (indicative of bullish sentiment) over a 4-hour period.
Trend Line Analysis
A crucial trend line is currently forming and providing support near $5.10 on the 4-hour chart for the DOT/USD pair according to data sourced from Kraken. Further analysis indicates:
- Considerable bullish momentum can be achieved if there is a close above the $5.30 resistance in the short term.
- Post a marked dip, the DOT price discovered support near the $5.0 zone, producing a low of about $4.98.
- The price is actively making attempts for a fresh increase, showcasing similar trends with known cryptocurrencies Bitcoin and Ethereum.
Breaking Above Resistance
Clearing the resistance levels at $5.15 and $5.20 has cracked open opportunities for a key bullish trend line formation, with support near $5.10 on a 4-hour chart of the DOT/USD pair. Currently, the pair is trading over the $5.20 zone and the 100 simple moving average (4-hour period). Resisting these levels, immediate resistance is closing in at $5.30.
The critical $5.30 resistance level is near the 50% Fib retracement level of the downward movement from the $5.62 high to the $4.98 low. The following major resistance is looming at $5.40, marking the 61.8% Fib retracement level of the respective downward movement. Surpassing $5.40 could ignite a robust rally, a scenario where the price could reach $5.60 before facing the next big resistance at the $6.0 mark.
Chances of a Downside Correction?
If the DOT price fails to continue its upward journey above $5.30 or $5.40, it could potentially launch a downside correction. The first significant support appears to be the $5.15 level and the 100 simple moving average over four hours. If the prices drop even lower, the next major support might ignite at $5.10, threatening a possible downward movement to the $5.00 mark. Further losses may eventually create space for a severe move towards the $4.80 support zone.
Technical Indicators
- 4-Hours MACD: The MACD for DOT/USD seems to be gaining momentum in the bullish zone just like the currency.
- 4-Hours RSI: The Relative Strength Index (RSI) for DOT/USD is currently over the 50 mark, signaling a possible upside.
Added to these insights, the major support and resistance levels to watch out for are:
- Support: $5.15, $5.10 and $5.00.
- Resistance: $5.30, $5.40, and $5.60.
Source: DOTUSD on TradingView.com
In Conclusion
Polkadot’s DOT shows promising signs of an upward movement with significant progress over recent resistance levels. The optimistic outlook for DOT will be confirmed once it can close above the $5.30 and $5.40 marks, which would fuel its rally in the days to come.
