Key Takeaways:
- DOT price is attempting a fresh rally above the $5.0 resistance.
- It broke a crucial bearish trend line with resistance near $4.50 on the 4-hour chart.
- A close above $5.25 could start a fresh rally toward the $7.00 level.
DOT Price Prediction | Image from Coinbase Learn
New Delhi(CoinChapter.com): Polkadot’s DOT found support near $4.20 and climbed higher. The price is consolidating and might aim for another increase toward the $7.00 resistance zone.
Polkadot’s DOT Price Could Rise Further
After a major decline, DOT price found support near the $4.30 zone against the US Dollar. The price formed a base above the $4.30 level and recently started a steady increase.
There was a move above the $4.50 and $5.65 resistance levels. Besides, the price broke a crucial bearish trend line with resistance near $4.50 on the 4-hours chart. The price even settled above the $5.00 resistance zone and the 50 simple moving average (blue, 4-hour), like Bitcoin and Ethereum.
Polkadot’s price 4-hour chart | Source: DOTUSD on TradingView.com
A high is formed near $5.24 and the price is now consolidating gains. It is trading near the 23.6% Fib retracement level of the upward move from the $4.27 swing low to the $5.24 high.
DOT price is also holding the 50 simple moving average (blue, 4-hour). On the upside, immediate resistance is near the $5.20 level. The next major resistance is near the $5.50 zone. A clear wave above the $5.50 level could send the price further higher.
In the stated case, the price may perhaps test the $6.20 resistance or $6.50. Any more gains might open the doors for a move toward the $7.0 level.
If there is no push above $5.25 or $5.50, DOT price might start a fresh decline. Initial support is near the $5.00 level. The next major support is near $4.75 and the 50% Fib retracement level of the upward move from the $4.27 swing low to the $5.24 high.
A close below $4.75 may perhaps start a drop toward the $4.50 support zone. Any more losses could set the pace for a test of the $4.25 support zone in the coming days or even a new low near $4.0.
Overall, DOT price is consolidating gains and might attempt another increase above the $5.50 resistance. If the bulls can clear the $5.50 resistance zone, the price could easily drift toward the $6.20 level or even $7.0. Conversely, there might be a fresh decline to $4.75.
