Polkadot’s DOT started a surge after it broke the USD 10.00 resistance against the US dollar. It is up more than 35% this week, and it fared better bitcoin.
- DOT gained speed above the USD 9.50 and USD 10.00 resistance levels against the US dollar.
- The price traded to a new annual high of $ 11.60, reaching well above the simple 100 (4-hour) moving average.
- There was a break above a major bearish trendline with resistance at $ 9.35 on the 4-hour chart of the DOT / USD pair (data source from Kraken).
- The pair could correct lower, but the previous USD 10.50 resistance may provide support.
Polkadot’s DOT is raising more than $ 11
After testing the $ 7.20 zone, DOT started a new increase above the USD 8.50 resistance level. The bulls gained momentum resulting in a solid push above the USD 9.00 pivot level.
There was a clear break above a major bearish trendline with resistance near $ 9.35 on the 4-hour chart of the DOT / USD pair. It opened the doors for a steady rise above the USD 10.00 level. The bulls pushed the price above the 76.4% Fib retracement level of the swing high’s downward move from $ 10.71 to $ 7.18 low.
It even broke the last swing high at $ 10.71 and settled well above the 100 easy moving average (4 hours). Finally, there was a break above USD 11.00 and the price tested the USD 11.60 zone.
Source: DOTUSD on TradingView.com
It looks like the price is facing hurdles near USD 11.50 – USD 11.60. It represents the 1,236 Fib extension level of the downward move from the $ 10.71 swing high to $ 7.18 low. It looks like there could be a downside correction from USD 11.50.
On the downside, the previous breakout zone near the USD 10.70 and USD 10.50 levels could be a strong support. Even more losses could push the price into the USD 9.00 support zone.
If the DOT price starts to climb again, it could easily clear the USD 11.50 and USD 11.60 resistance levels. The next big resistance on the upside could be near USD 12.00.
A close above $ 12.00 could potentially open the doors for sustained upward movement. In the case mentioned, the bulls could be aiming for a test of the USD 15.00 level.
4-Hours 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.
Key Support Levels – USD 11.00, USD 10.70, and USD 10.50.
Major Resistance Levels – USD 11.50, USD 11.60 and USD 12.00.