Key Takeaways:
- DOT price started a steady increase above the $5 resistance.
- A major bearish trend line is forming with resistance near $6.40 on the daily chart.
- There could be more upsides towards $8 or even $10.
Polkadot’s DOT found support near $4.25 and recovered higher. The price shows positive signs and aims for an upside break above $7.
Polkadot’s DOT Price Jumps 25% in a Week
After a major decline, DOT price found support near the $4.25 zone against the US Dollar. The price traded as low as $4.23 and started a decent increase.
There was a steady increase above the $4.80 and $5.00 resistance levels. The price gained pace after it cleared the $5.50 resistance zone and moved into a short-term positive zone, similar to bitcoin and ethereum.
During the increase, the price surpassed the 50% Fib retracement level of the downward move from the $7.41 swing high to the $4.23 low.
DOT price is now trading above the $6 resistance and the 50-day simple moving average (blue). On the upside, immediate resistance is near the $6.20 level. It is close to the 61.8% Fib retracement level of the downward move from the $7.41 swing high to the $4.23 low.
The next major resistance is near the $6.35 zone. A major bearish trend line is forming with resistance near $6.40 on the daily chart.
A clear wave above the $6.40 level and the trend line could increase the chances of a move above $6.80. The next major resistance sits near the $7 zone. Any more gains might open the doors for a move toward the $8.50 level in the coming days. The main breakout zone on the upside sits near the $10 zone.
Another Dip in DOT?
The price might start a downside correction if there is no push above $6.20 or $6.40. Initial support is near the $5.50 level. The next major support is near $5.0 and the 50-day simple moving average (blue).
A close below $5.00 may perhaps start another strong decline. The price might dive below the $4.25 support in the stated case.
Overall, the DOT price is attempting a key upside break above the $6.40 resistance zone. If the bulls can clear the $6.40 resistance zone, it could easily drift toward the $8 level. Conversely, there might be a fresh decline below $5.50.
