Polkadot (DOT) continues to consolidate its gains above the $7.40 level against the US Dollar, showing signs of a potential upward movement if it can surpass the $7.70 resistance. The recent price action has seen DOT testing the $7.70 resistance level and maintaining a position above the $7.20 zone and the 100-hourly simple moving average.
A key bullish trend line is forming with support at $7.40 on the hourly chart of the DOT/USD pair, indicating a positive outlook for the cryptocurrency. However, a failure to hold above the $7.20 support level could lead to a downward movement.
Following a base formation above the $6.80 mark, DOT price has seen a notable increase, overcoming obstacles near $7.20 and reaching a high of $7.69 before consolidating its gains, similar to Ethereum and Bitcoin’s price movements.
In case of a break below the $7.50 support zone, DOT price might face further downside pressure. Immediate resistance is anticipated near the $7.70 level, with a major resistance level at $7.80 potentially triggering a strong rally towards $8.20 and eventually targeting the $8.50 zone.
Looking ahead, if DOT fails to surpass the $7.70 resistance, it could face downward pressure towards the $7.40 support level and the key trend line. Additional support levels include $7.30 and the 100 simple moving average (4 hours), with a further decline possibly leading to a test of $7.00 and potentially lower support zones at $6.90 and $6.80.
Technical indicators like the MACD and RSI for DOT/USD are showing bullish momentum, with key support levels at $7.40, $7.30, and $7.10, while major resistance levels are identified at $7.70, $7.80, and $8.20. Traders and investors are closely monitoring these price levels for potential trading opportunities in the Polkadot market.
