Charted: Polkadot (DOT) Setting Up For Fresh Surge Above $40
Polkadot’s DOT started a fresh increase from the $28.00 support against the US Dollar. It is rising and the bulls seem to be eyeing an upside break above the $40.00 resistance
- DOT is holding the ground above the $35.00 and $36.00 levels against the US dollar.
- The price is trading nicely above the $35.00 support and the 100 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $35.80 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
- The pair could start a strong rally once it clears the $39.50 and $40.00 resistance levels.
Polkadot’s DOT Eyes Fresh Surge
After correcting towards $28.000, DOT started a fresh increase. It recovered above the $30.00 and $32.00 levels to move back into a positive zone.
The bulls were able to push the price above the $35.00 level and 100 simple moving average (4-hours). The recent swing low was formed near $34.83 before the price climbed above $36.00. There was a break above the 50% Fib retracement level of the downward move from the $39.53 swing high to $34.83 swing low.
The price is now trading nicely above the $37.00 level. There is also a major bullish trend line forming with support near $35.80 on the 4-hours chart of the DOT/USD pair.
Source: DOTUSD on TradingView.com
An immediate resistance is near the $38.35 level. It is close to the 76.4% Fib retracement level of the downward move from the $39.53 swing high to $34.83 swing low. The main resistance is still near the $39.50 and $40.00 levels.
A successful break above $39.50 and a close above $40.00 could start a strong rally. In the stated case, the price could easily rise 10%-15% in the near term.
If DOT price fails to continue higher above $39.50 or $40.00, there could be a fresh decline. The first key support is near the $37.60 and $37.50 levels.
The next major support is near the $35.80 level and the bullish trend line. Any more losses may perhaps open the doors for a move towards the $32.00 support zone.
4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major Support Levels – $37.50, $36.00 and $35.80.
Major Resistance Levels – $38.35, $39.50 and $40.00.