Polkadot’s DOT Price Faces Resistance
After experiencing a sharp decline, the price of DOT found support near the $3.90 level. It has since started to rise again, following the upward trend of Bitcoin and Ethereum.
The price managed to break above the resistance levels at $4.00 and $4.05. It also surpassed the 23.6% Fibonacci retracement level from its previous downward move between the swing high of $4.80 and the low of $3.91. Currently, DOT is trading just above the $4.15 zone, along with the 100 simple moving average on the 4-hour chart.
Resistance and Potential Rally
The immediate resistance for DOT is around the $4.20 level. Moreover, there is a bearish trend line forming with resistance near $4.175 on the DOT/USD pair’s 4-hour chart.
The next significant resistance lies near $4.35, close to the 50% Fibonacci retracement level of its previous downward move from $4.80 to $3.91 low. A successful breakout above this level could potentially trigger a strong rally, leading to a possible surge towards $4.80 in the coming days. Furthermore, another major resistance can be found near the $5.0 zone.
Possible Decline and Support Levels
If DOT fails to continue its upward movement above $4.20 or $4.35, it may experience another decline in price. The initial key support lies near the $4.05 level.
The next major support can be found at around $3.90, which is close to the previous low of $3.91. If this support is broken, it could lead to a further decline towards the $3.75 level. Any additional losses may potentially result in a move towards the $3.50 support zone.
Technical Indicators
The 4-hour MACD for DOT/USD is currently gaining momentum within the bullish zone. Additionally, the 4-hour RSI (Relative Strength Index) for DOT/USD is above the 50 level.
Source: DOTUSD on TradingView.com
Hot Take: DOT Price Faces Resistance Before Potential Rally
The price of Polkadot’s DOT cryptocurrency has encountered resistance near the $4.20 and $4.35 levels. However, if it manages to break above these levels, it could initiate a strong rally towards $4.80 and possibly even higher in the near future. On the other hand, failure to surpass these resistance levels might lead to another decline, with key support levels at $4.05 and $3.90. Traders and investors should closely monitor these levels to determine the next potential move for DOT.
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