Polkadots DOT started a sharp rise after breaking the $ 10.00 resistance against the US dollar. It’s up over 35% this week, outperforming Bitcoin.
- DOT gained pace above the $ 9.50 and $ 10.00 resistance levels against the US dollar.
- The price hit a new year high of $ 11.60, well above the simple moving average of 100 (4 hours).
- The 4-hour chart for the DOT / USD pair (data source from Kraken) broke above a major bearish trendline with resistance near USD 9.35.
- The pair could correct lower but previous resistance at USD 10.50 could provide support.
Polkadots DOT rallies over $ 11
After testing the $ 7.20 zone, DOT started a fresh surge above the $ 8.50 resistance level. The bulls gained strength which resulted in a solid push above the $ 9.00 pivot level.
On the 4-hour chart for the DOT / USD pair, there was a significant break above a major bearish trendline with resistance near $ 9.35. It opened the doors for a steady rise above the $ 10.00 level. The bulls pushed the price above the 76.4% fib retracement level of the downward move from the high of $ 10.71 to the low of $ 7.18.
It even broke its recent high near $ 10.71 and was well above the simple moving average of 100 (4 hours). Eventually there was a break above $ 11.00 and the price tested the $ 11.60 zone.
Source: DOTUSD on TradingView.com
It appears the price is facing hurdles in the vicinity of $ 11.50 to $ 11.60. It represents the 1,236 Fib extension level of the downward move from the $ 10.71 swing high to the $ 7.18 low. It looks like there could be a downside correction of $ 11.50.
On the downside, the previous breakout zone near the $ 10.70 and $ 10.50 levels could serve as strong support. Further losses could push the price towards the USD 9.00 support zone.
If DOT price rises again, the $ 11.50 and $ 11.60 resistance levels could be easily exceeded. The next major resistance to the upside could be near the $ 12.00 level.
A closing price above $ 12.00 could potentially open the doors for sustained upward movement. In the indicated case, the bulls could aim for a test to the $ 15.00 level.
4 Hour MACD – The MACD for DOT / USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOT / USD is now well above the 60 level.
Major Support Levels – $ 11.00, $ 10.70, and $ 10.50.
Main Resistance Levels – $ 11.50, $ 11.60, and $ 12.00.