Charted: Polkadot (DOT) Steadies Above $35, Why Bulls Aim $40 or Higher

Polkadot’s DOT corrected lower from $42.00, but it remained stable above $30.00 against the US Dollar. It is now rising and it seems like the bulls are eyeing a fresh increase to $40.00 and $42.00.

  • DOT is holding the ground above the $30.00 and $35.00 levels against the US dollar.
  • The price is trading nicely above the $35.00 support and the 100 simple moving average (4-hours).
  • There was a break above a crucial bearish trend line with resistance near $34.50 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
  • The pair remains in a strong uptrend and it could soon revisit $40.00 and $42.00.

Polkadot’s DOT Eyes Fresh Rally

After finding strong offers near $42.00, DOT started a downside correction. There was a break below the $35.00 and $32.00 support levels. The price even spiked below the $30.00 support level, but the bulls remained in action.

A swing low was formed near $26.25 before the price started a fresh increase. The price climbed above the $30.00 and $32.00 resistance levels. There was a break above the 50% Fib retracement level of the downward move from the $42.20 swing high to $26.25 swing low.

Polkadot (DOT)

Source: DOTUSD on TradingView.com

There was also a break above a crucial bearish trend line with resistance near $34.50 on the 4-hours chart of the DOT/USD pair. It is now trading nicely above the $35.00 support and the 100 simple moving average (4-hours).

An immediate resistance is near the $38.50 level. It is close to the 76.4% Fib retracement level of the downward move from the $42.20 swing high to $26.25 swing low. A clear break above the $38.50 and $38.80 resistance levels could lead the price towards the $40.00 level. The next key resistance sits near the $42.00 level.

Dips Supported?

If DOT price fails to continue higher above $38.50 or $39.00, there could be a short-term downside correction. The first key support is near the $36.00 and $35.00 levels.

The next major support is near the $33.50 level and the 100 simple moving average (4-hours). Any more losses may perhaps open the doors for a move towards the $30.00 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.

Major Support Levels – $36.00, $35.00 and $33.50.

Major Resistance Levels – $38.50, $40.00 and $42.00.



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