Key Takeaways:
- DOT price started a fresh increase above the $6 resistance.
- The current price action suggests more gains above the $7 resistance.
New Delhi(CoinChapter): Polkadot’s DOT found support near $5.80 and climbed higher. The price is rising and it may soon surge towards the $8 resistance zone.
Polkadot’s DOT Price Pumps 15% In a Week
After forming a base above the $5 support, DOT price started a steady increase against the US Dollar. The price gained pace for a move above the $5.80 and $6.00 resistance levels.
The upward move was such that the price even cleared a major bearish trend line with resistance near $6.25 on the daily chart. The pair climbed above the 61.8% Fib retracement level of the main decline from the $7.41 swing high to $4.23 low.
Polkadot’s price daily chart | Source: DOTUSD on TradingView.com
Dot price is up over 15% in a week, outperforming bitcoin and ethereum. It is now trading above the $6.50 resistance and the 50-day simple moving average (blue).
It is also trading above the 76.4% Fib retracement level of the main decline from the $7.41 swing high to $4.23 low. On the upside, an immediate resistance is near the $7.00 level. The next major resistance is near the $7.40 zone or the last swing high.
A clear wave above the $7.40 level could send the price towards the $8.00 resistance. Any more gains might open the doors for a move towards the 1.236 Fib extension level of the main decline from the $7.41 swing high to $4.23 low at $8.15. The main breakout zone on the upside sits near the $9.40 zone.
Downside Correction?
If there is no push above $7.00 or $7.40, the price might start a downside correction. An initial support is near the $6.60 level. The next major support is near $6.20.
A close below $6.20 may perhaps start a drop towards the 50-day simple moving average (blue). Any more losses could set the pace for a test of the $5.00 support zone in the coming days.
Overall, dot price is showing a lot of positive signs above the $6.50 resistance zone. If the bulls are able to clear the $7.00 resistance zone, it could easily drift towards the $8 level. Conversely, there might be a fresh decline to $6.20.
