Charted: Polkadot (DOT) Surges 20%, Why It Could Soon Test $25
Polkadot’s DOT started a strong surge and cleared $20.00 against the US Dollar. It is trading with a strong bullish angle and it is likely to accelerate higher towards $24.00 or $25.00.
- DOT rallied above $18.80 and $20.00 resistance levels against the US dollar.
- The price is trading nicely above the $20.00 support and he 100 simple moving average (4-hours).
- There was a break above a major contracting triangle with resistance near $16.50 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
- The pair remains in a strong uptrend and it could rise further above $22.00 and $23.20.
Polkadot’s DOT Settles Above $20
After forming a support base above $14.50, DOT started a fresh rally. There was a strong bullish momentum and the price broke many important hurdles near $16.50.
There was also a break above a major contracting triangle with resistance near $16.50 on the 4-hours chart of the DOT/USD pair. It opened the doors for a larger increase and the price cleared the range resistance near the $19.00 level.
The bulls even pumped the price above the $20.00 level and it settled well above the 100 simple moving average (4-hours). A new monthly high is formed near $21.80 and the price is currently consolidating.
Source: DOTUSD on TradingView.com
An initial support on the downside is near the $20.40 level. It is close to the 23.6% Fib retracement level of the recent increase from the $15.72 swing low to $21.80 high. On the upside, the $21.80 and $22.00 levels are initial hurdles. A clear break above the $22.00 level will most likely open the doors for a surge towards the $23.20 and $24.00 levels. The next key resistance could be $25.00.
Dips Supported?
If DOT price fails to continue higher above $21.80 or $22.00, there could be a short-term downside correction. The first key support is near the $20.40 and $20.20 levels.
The next major support is near the $19.00 level (the previous range resistance zone). It is also close to the 50% Fib retracement level of the recent increase from the $15.72 swing low to $21.80 high. Any more losses may possibly call for a drop towards the $17.20 level.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is still above the 60 level.
Major Support Levels – $20.40, $20.20 and $19.00.
Major Resistance Levels – $21.80, $22.00 and $24.00.
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Aayush Jindal, @KhareemSudlow