Key Takeaways:
- DOT price corrected gains and retested the 50-day simple moving average (blue).
- A crucial bullish trend line is forming with support near $6.60 on the daily chart.
- A close above $8.00 could start a fresh surge toward the $9.50 and $10.00 levels.
New Delhi(Coinchapter.com): Polkadot (DOT) is showing many bullish signs above $6.50. The price might soon set up for a fresh surge above the $8.00 resistance zone.
Polkadot Holds Key Support
In the last DOT price prediction, we discussed the chances of more upsides above the $7.80 resistance. Polkadot bulls did pump the price above the $7.80 and $8.00 resistance levels. A new multi-week high was formed near $9.58 before there was a downside correction.
There was a sharp decline in DOT below the $8.00 support, like Bitcoin. The price even dived below the $7.20 support, but the bulls protected the main support at $6.50 and the 50-day simple moving average (blue).
DOT price remained strong above the $6.50 zone. A low was formed near $6.52, and the bulls are now attempting a fresh increase. Today, the price is up over 5% and there was a move above the 23.6% Fib retracement level of the downward move from the $9.58 swing high to the $6.52 low.
More importantly, there is a crucial bullish trend line forming with support near $6.60 on the daily chart. The current price action and daily candle suggest high chances of more upsides. On the upside, immediate resistance is near the $7.75 level.
The first major resistance sits at $8.00 and a connecting bearish trend line. It is near the 50% Fib retracement level of the downward move from the $9.58 swing high to the $6.52 low.
A close above the $8.00 resistance could spark another surge. In the stated case, DOT could drift toward the $9.50 level. Any more gains might open the doors for a move toward the $10.00 level. Fundamentally, PolkadotDevs MeetUps will be back in Athens on January 11, an ideal place for developers and tech enthusiasts eager to explore cutting-edge technology.
Another Drop in DOT?
If there is no push above $7.75 or $8.00, DOT price might start a downside correction. Initial support is near the $7.00 level and the 50-day simple moving average (blue).
The first major support sits near the $6.50 level and the trend line. A daily close below the $6.50 support could increase selling pressure. In the stated case, Polkadot bears might aim for a move toward the $5.80 support. Any more losses could set the pace for a test of the $4.50 support zone in the coming weeks.
Overall, DOT price is holding gains above $6.50 and might soon attempt a fresh surge above $8.00. If the bulls fail, there could be a drop toward the $5.80 support.
