Polkadot (DOT) is gaining pace above the $ 10.00 resistance against the US Dollar. The price could extend its rally toward the $ 12.00 level in the near term.
- DOT is gaining pace above the $ 9.80 and $ 10.00 levels against the US Dollar.
- The price is trading above the $ 10.00 zone and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at $ 9.10 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
- The pair could continue to rise toward the $ 12 resistance zone.
Polkadot Price Resumes Rally
After forming a base above the $ 8.00 level, DOT price started a fresh rally. It gained over 20% in a few days and even outperformed Ethereum and Bitcoin at times.
There was a clear move above the $ 9.50 and $ 10.00 resistance levels. The price traded to a new multi-month high at $ 11.00 and is currently consolidating gains. There was a minor pullback below the $ 10.75 level. The price is still above the 23.6% Fib retracement level of the upward move from the $ 8.26 swing low to the $ 11.00 high.
DOT is now trading well above the $ 10.00 zone and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $ 9.10 on the 4-hour chart of the DOT/USD pair. The trend line is close to the 61.8% Fib retracement level of the upward move from the $ 8.26 swing low to the $ 11.00 high.
Source: DOTUSD on TradingView.com
Immediate resistance is near the $ 10.75 level. The next major resistance is near $ 11.00. A successful break above $ 11.00 could start another strong rally. In the stated case, the price could easily rally toward $ 12.00 in the near term. The next major resistance is seen near the $ 13.50 zone.
Are Dips Supported in DOT?
If DOT price fails to start a fresh increase above $ 11.00, it could start a downside correction. The first key support is near the $ 10.35 level.
The next major support is near the $ 10.00 level, below which the price might decline to $ 9.50. Any more losses may perhaps open the doors for a move toward the $ 9.20 support zone or the trend line.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major Support Levels – $ 10.35, $ 10.00 and $ 9.50.
Major Resistance Levels – $ 10.75, $ 11.00, and $ 12.00.
