Crypto enthusiasts are watching Polkadot (DOT) as it shows signs of an upward trend. With the price surging above key resistance levels, the question on everyone’s mind is whether Polkadot’s positive momentum will continue. In this article, we’ll delve into the factors influencing Polkadot’s current trajectory and the crucial signals to watch for in the coming days.
Polkadot has recently experienced a significant uptrend, surpassing the $6.80 resistance against the US Dollar. Traders have observed a break above a significant bearish trend line with resistance near $6.50 on the 4-hour chart of the DOT/USD pair. This positive move follows a period of stability during which DOT found support near the $6.00 zone, forming a low at $5.97.
Key Levels and Resistance
Currently trading at the $7.00 zone and the 100 simple moving average, Polkadot faces immediate resistance near $7.20, with the next major obstacle at $7.28. The latter marks the 50% Fibonacci retracement level of the downward move from the $8.58 swing high to the $5.97 low.
A successful breach beyond $7.28 could trigger a strong rally, potentially propelling the price towards $8.00 in the near term, with the subsequent key resistance identified near the $8.50 zone.
Potential Scenarios for DOT
While the current outlook for Polkadot appears positive, traders should remain vigilant for potential signals that could impact the cryptocurrency’s trajectory. A failure to sustain momentum above $7.28 might result in a fresh decline.
In such a scenario, the first major support is near $6.60, followed by a more substantial support zone near $6.00. Further losses could lead to a descent towards $5.65, and breaching this level might open the doors for a move towards the $5.32 support zone.
Technical Indicators
Technical indicators, including the 4-hour MACD and RSI, suggest a bullish trend for DOT/USD. The MACD is gaining momentum in the bullish zone, while the RSI is above the 50 level, showing positive momentum.
As Polkadot’s price continues to climb, traders and investors are watching for signals that could determine the cryptocurrency’s future trajectory. The breach of key resistance levels and positive technical indicators paint a bullish picture for Polkadot. However, investors should be careful, as potential reversals are not uncommon in crypto.
