đ„đ„đ„ $DOT Price (Polkadot) Reaches Key Juncture, Is This #Bulls Trap or Correction?
Polkadot (DOT) is undergoing a corrective phase after testing the $7.5 resistance against the US Dollar. To regain upward momentum, it needs to maintain support above $6.75.
DOT made significant strides, reaching the $7.5 resistance level against the US Dollar.
Currently, it's trading above both the $7.00 zone and the 100 simple moving average (4 hours).
On the 4-hour chart of the DOT/USD pair (data sourced from Kraken), there's a short-term expanding triangle forming, indicating resistance at $7.50.
If it fails to sustain above the $6.75 support, the pair might continue its decline.
Polkadot's price found support above the $6.00 mark, initiating a notable upswing. It cleared several obstacles around $6.75 and even surged beyond $7.25, reaching a peak at $7.46. However, it's now experiencing a corrective phase, akin to #Ethereum and #bitcoin .
The price retraced below the $7.25 support zone, dipping below the 23.6% Fib retracement level of the upward move from the $6.03 swing low to the $7.46 high.
DOT stays above $7.00 and the 100 SMA (4 hours). Resistance is at $7.25 and $7.50, with a forming expanding triangle indicating resistance at $7.50 on the 4-hour chart of DOT/USD.
Breaking through $7.50 could spark a strong rally, aiming for $8.00 next. Beyond that, the $8.80 level may pose significant resistance.
Failure to break above $7.25 could lead to further downward pressure. The key supports are at $7.00 and the 100 SMA (4 hours), followed by $6.75 and the 50% Fib retracement level from $6.03 to $7.46. Below $6.75, the price might decline towards $6.50, then potentially to $6.10 or $6.00
Technical Indicators:
- 4-Hours MACD â The MACD for DOT/USD indicates a waning bearish momentum.
- 4-Hours RSI (Relative Strength Index) â The RSI for DOT/USD is currently below the 50 level.
- Major Support Levels â $7.00, $6.75, and $6.50.
- Major Resistance Levels â $7.25, $7.50, and $8.00.
Source - newsbtc.com
