Polkadot (DOT) is showing signs of bullish momentum as it aims for new highs. The price is currently consolidating above the $7.40 level against the US Dollar, and a potential break above the $7.70 resistance could trigger another upward movement.
DOT has been gaining traction and recently tested the $7.70 resistance. It is currently trading above the $7.20 zone and the 100-hourly simple moving average. There is also a bullish trend line forming with support at $7.40 on the hourly chart, indicating a positive outlook for DOT/USD.
After consolidating above the $6.80 level, DOT experienced a decent increase, surpassing barriers near $7.20 and reaching a high of $7.69. The price is now consolidating gains, similar to other cryptocurrencies like Ethereum and Bitcoin.
Although there was a minor decline below the $7.50 support zone, DOT remains above the $7.20 zone and the 100 simple moving average on the 4-hour chart. The key support level is at $7.40, where the bullish trend line lies.
If DOT fails to break above the $7.70 resistance, it may continue its downside movement. The next major support is expected around $7.30 and the 100 simple moving average on the 4-hour chart, or the 50% Fib retracement level between the swing low of $6.91 and the high of $7.69. Further losses could lead to a decline towards $7.00, with a possibility of reaching the $6.90 support zone or even $6.80.
However, if the bullish momentum continues, DOT could potentially rally towards $8.20 in the near term after breaking above the $7.80 resistance. The next major resistance zone is around $8.50.
In terms of technical indicators, the MACD for DOT/USD is gaining momentum in the bullish zone on the hourly chart. Additionally, the RSI is above the 50 level, indicating a positive sentiment for DOT.
Key support levels for DOT/USD are $7.40, $7.30, and $7.10, while major resistance levels are $7.70, $7.80, and $8.20. Traders and investors will closely monitor these levels and indicators to gauge the future direction of Polkadot’s price movement.