Charted: Polkadot (DOT) Holding Gains Despite Sharp Drop in BTC and ETH

Aayush Jindal

1 year ago

2 mins read

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Polkadot’s DOT surged towards $18.50 before correcting lower against the US Dollar. It is holding gains above $15.00 despite a crash in bitcoin and Ethereum.

DOT rallied above $12.00 and $15.00 before it faced sellers near $18.50 against the US dollar.
The price is trading nicely above the $15.00 support and he 100 simple moving average (4-hours).
There is a key bullish trend line forming with support near $15.50 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
The pair remains in a positive zone and it is likely to continue higher towards $18.50 and $20.00.

Polkadot’s DOT Stable Above $15

After a close above the $12.00 level, DOT started a fresh rally above the $15.00 resistance level. There was a strong bullish momentum above $15.00 and the price even climbed above $18.00.

However, the bulls failed to test the $20.00 level. The recent high was formed near $18.37 and the price recently corrected lower. There was a break below the $16.50 support level, but the bulls were active near the $15.00 and $14.80 support levels (a multi-touch zone).

A low is formed near $14.78 and the price is currently rising. It broke the $16.00 level and tested the 50% Fib retracement level of the downward move from the $18.37 swing high to $14.78 low.

Source: DOTUSD on TradingView.com

There is also a key bullish trend line forming with support near $15.50 on the 4-hours chart of the DOT/USD pair. The price is clearly trading nicely above the $15.00 support and he 100 simple moving average (4-hours). On the upside, a break above the $16.60 level could spark a fresh increase.

The next key resistance could be near $17.50 or the 76.4% Fib retracement level of the downward move from the $18.37 swing high to $14.78 low. Any more gains may possibly call for a break above $18.50.

Fresh Dip?

If DOT price fails to continue higher above $16.50 and $17.00, there could be a fresh decline. The first key support is near the $15.50 level and the trend line.

A successful break below the trend line support could put the $15.00 support at a risk. Any more losses may possibly call for a drop towards the $14.00 level.

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 still above the 50 level.

Major Support Levels – $15.50, $15.00 and $14.80.

Major Resistance Levels – $16.50, $17.20 and $18.50.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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