Polkadot (DOT) has been making significant strides in the cryptocurrency market, surpassing key resistance levels and gaining momentum against the US Dollar. The price of DOT has soared above $8.80, indicating a strong bullish trend that could potentially propel it even further.
DOT is currently trading above the $9.00 zone and the 100 simple moving average (4 hours), demonstrating its strength in the market. A key bullish trend line has been identified with support at $9.20 on the 4-hour chart of the DOT/USD pair, as sourced from Kraken. This trend line, coupled with the resistance at $10.00, will be crucial in determining the future price movement of DOT.
After establishing a base above $7.50, DOT witnessed a steady increase, exceeding 25% in a short period. This impressive growth outpaced both Ethereum and Bitcoin at certain points, highlighting the potential of DOT as a lucrative investment option. With a new multi-week high near $9.89, DOT is currently consolidating its gains above the 23.6% Fib retracement level. In the event of a successful break above $10.00, DOT could embark on a robust rally towards $12.00 and potentially even $13.50.
However, if DOT fails to sustain its upward momentum and falls below key support levels, a downside correction may occur. The $9.50 level serves as the initial support, followed by $9.20 and $8.80. Further losses could lead to a decline towards the $8.50 support zone, signaling a shift in the market sentiment.
The 4-hour MACD for DOT/USD is currently gaining momentum in the bullish zone, indicating a favorable outlook for the cryptocurrency. Additionally, the 4-hour RSI (Relative Strength Index) is above the 50 level, further supporting the bullish sentiment surrounding DOT. These technical indicators suggest that DOT has the potential to continue its positive trajectory in the near term.
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