NEW DELHI (CoinChapter.com) — Polkadot (DOT) shows many bullish signs above $7.00. The price might soon set up for a fresh surge above the $7.80 resistance zone.
Polkadot Restarts Increase
After a downside correction from the $9.58 high, Polkadot bulls were able to protect the $6.00 support zone. A low was formed at $5.99, and the DOT price started a recovery wave. A decent increase was above the $6.20 and $6.50 resistance levels.
There was a clear move above the 23.6% Fib retracement level of the downward wave from the $9.58 swing high to the $5.99 low. More importantly, it broke a major bearish trend line with resistance near $6.80 on the daily chart.
DOT price reclaimed the 50-day simple moving average (blue) to enter a positive zone, like Bitcoin and Ethereum. The current price action is bullish, signaling more upsides in the near term.
On the upside, immediate resistance is near the $7.80 level. It is close to the 50% Fib retracement level of the downward wave from the $9.58 swing high to the $5.99 low. A close above the $7.80 resistance could increase the chances of a sustained rally.
The next major resistance sits at $8.75, above which DOT could drift toward the $9.50 level. Any more gains might open the doors for a move toward the $10.00 level or even $12.00 in the coming days. Fundamentally, Fellowship Referendum 74, a proposal to burn DOT used for coretime purchases, was passed, sparking positive sentiment.
Are Dips Limited in DOT Bulls Scenario?
If there is no push above $7.75 or $8.00, the DOT price might start a downside correction. Initial support is near the $7.25 level and the 50-day simple moving average (blue).
The first major support sits near the $6.80 level and the trend line zone. The main uptrend support sits near the $6.00 region. A daily close below the $6.00 support could increase selling pressure. In the stated case, Polkadot Bears might aim for a move toward the $5.00 support. Any more losses could set the pace for a test of the $4.20 support zone in the coming weeks.
Overall, DOT price is showing bullish signs above $7.00 and might soon attempt a fresh surge above $7.80. If the bulls fail, there could be a drop toward the $6.80 support.
