Polkadot (DOT) is gaining pace above the USD 10.00 resistance against the US Dollar. The price could extend its rally towards the USD 12.00 level in the near term.
- DOT is gaining pace above the USD 9.80 and USD 10.00 levels against the US dollar.
- The price is trading above the $10.00 zone and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support at $9.10 on the 4-hour chart of the DOT/USD pair (Kraken data source).
- The pair could continue to rise towards the $12 resistance zone.
Polkadot Price resumes the rally
After forming a base above the USD 8.00 level, DOT price started a new rally. It gained more than 20% in a few days, sometimes even outperforming Ethereum and Bitcoin.
There was a clear move above the USD 9.50 and USD 10.00 resistance levels. The price traded to a new multi-month high at $11.00 and is currently consolidating gains. There was a small 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 major bullish trendline forming with support at $9.10 on the 4-hour chart of the DOT/USD pair. The trendline 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 around $11.00. A successful break above $11.00 could be the start of another strong rally. In the mentioned case, the price could easily rise to $12.00 in the short term. The next major resistance is seen near the $13.50 zone.
Are dips supported in DOT?
If the DOT price fails to start a new increase above $11.00, it could trigger a downward correction. The first major support is near the $10.35 level.
The next major support is near the USD 10.00 level, below which the price could drop to USD 9.50. Any further losses could perhaps open the doors for a move towards the $9.20 support zone or trendline.
Technical indicators
4-hour MACD – The MACD for DOT/USD is now gaining strength in the bullish zone.
4-hour 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.
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