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DOT Price (Polkadot) Key Indicators Suggest Strong Case For Rally To $6
Polkadot’s DOT is moving higher from the $5.0 support against the US Dollar. The price could rally if it clears the $5.30 and $5.40 resistance levels.
Polkadot’s DOT Price Aims Higher
After a sharp decline, DOT price found support near the $5.0 zone. A low is formed near $4.98 and the price is now attempting a fresh increase, similar to Bitcoin and Ethereum.
There was a break above the $5.15 and $5.20 resistance levels. There is also a key bullish trend line forming with support near $5.10 on the 4-hours chart of the DOT/USD pair. The pair is now trading above the $5.20 zone and the 100 simple moving average (4 hours).
Immediate resistance is near the $5.30 level. It is near the 50% Fib retracement level of the downward move from the $5.62 swing high to the $4.98 low.
Source: DOTUSD on TradingView.com
The next major resistance is near $5.40 or the 61.8% Fib retracement level of the downward move from the $5.62 swing high to the $4.98 low. A successful break above $5.40 could start a strong rally. In the stated case, the price could easily rally toward $5.60 in the coming sessions. The next major resistance is seen near the $6.0 zone.
Dips Limited?
If DOT price fails to continue higher above $5.30 or $5.40, it could start a downside correction. The first key support is near the $5.15 level and the 100 simple moving average (4 hours).
The next major support is near the $5.10 level and the trend line, below which the price might decline to $5.00. Any more losses may perhaps open the doors for a move toward the $4.80 support zone in the coming sessions.
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 – $5.15, $5.10 and $5.00.
Major Resistance Levels – $5.30, $5.40, and $5.60.