Polkadot (DOT) started a strong uptrend after breaking the $ 5.40 resistance against the US dollar. This week it rose over 20% and even rose above $ 7.00.
The DOT rallied above the $ 5.40 and $ 6.00 levels to start a fresh increase against the US dollar.
The price is currently $ 7.00 and is trading well above the 100 simple moving average.
There was a break above a major bearish trend line with resistance around $ 5.40 on the 4-hour chart of the DOT / USD pair.
The pair traded as high as $ 7.68 and is currently correcting lower.
Polkadot (DOT) rally
This week, DOT formed a strong support base above the $ 5.00 level. It launched a steady rise and broke several key hurdles around $ 5.40 to move into the bullish zone.
It even settled above the $ 5.50 level and the 100 simple moving average. More importantly, there was a break above a major bearish trend line with resistance near $ 5.40 on the 4-hour chart of the DOT / USD pair.
There was a sharp upward move above the $ 6.00 and $ 7.00 levels. The price reached a new monthly high above $ 7.50 and traded at $ 7.68. DOT outperformed Bitcoin and ETH. It is currently recovering and trading below $ 7.50.
The first major downside support is near the $ 7.00 zone. On the upside, the $ 7.50 and $ 7.65 levels are significant hurdles. A clear break above the $ 7.65 level could open the doors for a steady increase towards $ 8.00 or $ 8.20 in the coming days.
If the DOT price starts a downside correction below $ 7.20, it could find strong buying interest near the $ 7.00 and $ 6.95 levels in the near term.
The next major support is near the $ 6.70 level (multitouch zone) and the recent breakout zone. Further losses could require testing of the $ 6.25 support zone.
4-Hour MACD – The MACD for DOT / USD is gaining momentum in the bullish zone.
4-Hour RSI (Relative Strength Index) – The RSI for DOT / USD is currently well above the 60 level.
Support Levels – $ 7.20, $ 7.00 and $ 6.95.
Resistance Levels – $ 7.50, $ 7.65 and $ 8.00.