Polkadot Consolidates Gains, Holding Above Key Support Levels
Polkadot (DOT) is currently consolidating its gains above the $6.60 support zone against the US Dollar. The price is trading above the $6.65 zone and the 100 simple moving average (4 hours), indicating a positive trend. There is a key bullish trend line forming with support near $6.65 on the 4-hour chart of the DOT/USD pair.
Polkadot Price Holds Ground
After finding support above $5.50, the price of DOT started to increase. It successfully cleared resistance levels at $5.85 and $6.00, entering a positive zone similar to Bitcoin and Ethereum. The price even surpassed the $6.65 resistance zone and settled above the 100 simple moving average (4 hours). However, it faced resistance near $7.75 and is currently undergoing a correction.
More Losses in DOT?
If the price fails to start a fresh increase above $7.05, there is a possibility of further downward movement. The first key support level is near $6.65, followed by the trend line. A break below these levels could lead to a decline towards $5.70 and potentially even the $5.00 support zone.
Technical Indicators
The MACD for DOT/USD on the 4-hour chart is showing bearish momentum, while the RSI has dropped below the 50 level.
Hot Take: Polkadot Maintains Stability, But Faces Resistance
Polkadot (DOT) continues to hold its ground above key support levels, indicating stability in its price movement. However, it faces resistance near $7.75, which has caused a correction in its recent gains. If the price manages to break above this resistance, it could rally towards $8.00. On the other hand, if it fails to gain momentum and falls below support levels, further losses may be expected. Traders should closely monitor these key levels to determine the future direction of DOT.
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