Polkadot Price Analysis: Can DOT Break $7.50 Resistance?
Polkadot (DOT) has shown strength recently as it tested the $7.50 resistance level against the US Dollar. The price is currently holding above the $7.00 zone and the 100 simple moving average (4 hours). Let’s delve deeper into the technical analysis to see what the future holds for DOT.
Polkadot Price Holds Support
After consolidating above $6.00, DOT initiated a bullish move breaking key barriers near $6.75 and surging above $7.25. Despite reaching a high of $7.46, the price is now retracing some gains, similar to other major cryptocurrencies like Ethereum and Bitcoin.
- Above $7.00 zone and the 100 simple moving average (4 hours).
- Immediate resistance near $7.25 level.
- Next major resistance at $7.50.
A short-term expanding triangle is forming with resistance at $7.50 on the 4-hour chart of the DOT/USD pair. A break above $7.50 could pave the way for a strong rally towards $8.00, followed by a significant hurdle near $8.80.
More Downsides in DOT?
If DOT fails to break above $7.25, it could face further downside pressure. Key support is seen at $7.00 and the 100 simple moving average (4 hours). Below this, the price may test the $6.75 support level, followed by a potential drop to $6.50.
- First key support at $7.00 and 100 SMA (4 hours).
- Next major support at $6.75.
- Possible decline to $6.50 and even $6.10 or $6.00.
Technical indicators are showing signs of weakness with MACD losing momentum in the bearish zone and RSI dipping below the 50 level. The crucial support and resistance levels for DOT are as follows:
- Major Support Levels – $7.00, $6.75, $6.50
- Major Resistance Levels – $7.25, $7.50, $8.00
Overall, the direction of DOT’s price movement will likely depend on its ability to break above the $7.50 resistance level in the coming sessions
Source: TradingView
Hot Take: Keep an Eye on Polkadot’s Resistance at $7.50
As Polkadot faces a critical resistance at $7.50, traders are closely monitoring its price action to determine the next potential move. Stay tuned for more updates on DOT’s price dynamics as it navigates through key support and resistance levels in the cryptocurrency market.
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