Polkadot (DOT) is consolidating gains above the $7.40 zone against the US dollar. The price could begin another rally if it breaks through the resistance at $7.70.
- DOT gained momentum and tested the $7.70 resistance level against the US dollar.
- The price is above the $7.20 zone and the 100-hour plain moving average.
- A key bullish trendline is forming on the hourly chart of the DOT/USD pair with support at $7.40 (data source from Kraken).
- The pair may continue to rise if it does not break above the $7.20 support.
Polkadot price maintains support
After forming a base above the $6.80 level, the DOT price began a decent rally. It broke many hurdles near $7.20 and even rose above $7.65. The high was formed at $7.69 and the price is currently consolidating gains like Ethereum and Bitcoin.
There has been a move below the $7.50 support zone. The price fell below the 23.6% Fib retracement level resulting from the upward move from a low of $6.91 to a high of $7.69.
DOT is currently trading above the $7.20 zone and the 100 plain moving average (4-hourly). A key uptrend line is also forming on the hourly chart of DOT/USD with support at $7.40. Immediate resistance is near the $7.70 level.
The next major resistance is near $7.80. A successful break above $7.80 could start another mighty rally. In this case, the price could easily rise to $8.20 in the near future. The next major resistance is evident near the $8.50 zone.
More DOT flaws?
If the DOT price does not start a fresh rally above $7.70, it could continue to decline. The first key support is located near the $7.40 level and the trend line.
The next major support is located near $7.30 and the 100 plain moving average (4 hours) or 50% Fib retracement level in an upward move from a low of $6.91 to a high of $7.69, below which the price may fall to $7.00. Larger losses could perhaps open the door to a move towards the $6.90 or $6.80 support zone.
Technical indicators
Hourly MACD – The MACD for DOT/USD is currently gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOT/USD is currently above the 50 level.
Major support levels – $7.40, $7.30 and $7.10.
Major resistance levels – $7.70, $7.80 and $8.20.
