Indicators have shown that DOT is currently experiencing bullish sentiment. However, traders are advised to keep a close eye on all indicators as there is a possibility that DOT will undergo a price correction in the near future.
Polkadot (DOT) is correcting gains to $7.75 against the US dollar. The price could start a new rise unless it closes below $6.30. DOT is consolidating gains above the $6.60 support zone against the US Dollar.
The price is trading above the $6.65 zone and the 100 simple moving average (4-hours). There is a key bullish trend line forming with support near $6.65 on the 4-hour chart of the DOT/USD pair (data feed from Kraken). The pair could start a fresh rise if the bulls protect the $6.65 and $6.30 support levels.
Polkadot Price Holds Firm
After forming a base above the $5.50 support, DOT price started a decent rise. The price was able to overcome the resistance levels of $5.85 and $6.00 to move into a positive zone, like Bitcoin and Ethereum.
Polkadot even broke the $6.65 resistance zone and settled above the 100 simple moving average (4-hours). Finally, bears appeared near the $7.75 zone. A high was formed near $7.77 and the price is now correcting the gains. There was a drop below the $7.20 and $7.00 levels. DOT fell below the 61.8% Fibonacci retracement level of the upward move from the low of $6.31 to the high of $7.77.
However, it is still above the $6.65 zone and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $6.65 on the 4-hour chart of the DOT/USD pair.
The trend line is near the 76.4% Fibonacci retracement level of the upward move from the low of $6.31 to the high of $7.77.
The immediate resistance is near the $7.05 level. The next major resistance is near $7.20. A successful break above $7.20 could start another strong rally. In such case, the price could easily rise towards $7.75 in the short term. The next major resistance is seen near the $8.00 area.
More Losses at DOT?
If DOT price fails to start a new rise above $7.05, it could continue to decline. The first key support is near the $6.65 level and the trend line. The next major support is near the $6.30 level, below which the price could fall to $5.70. Any further losses could perhaps open the doors for a move towards the $5.00 support zone.
4-Hour MACD Technical Indicators: The MACD for DOT/USD is now gaining momentum in the bearish zone. 4-hour RSI (Relative Strength Index). The RSI for DOT/USD is now below the 50 level.
Major Support Levels: $6.65, $6.30, and $5.70. Main resistance levels: $7.05, $7.20 and $7.75.
2023 Polkadot Forecast
Indicators have shown that DOT is currently experiencing bullish sentiment. Furthermore, DOT is trading between the weakness zone and the resistance zone. As the MACD confirmed the bullish sentiment, POINT could soon trade higher with a slight chance of touching the Resistance. If DOT continues to trade in an uptrend, there is a high probability that the altcoin will soon reach the Strong High position.
DOT had initially faced a huge drop during the crypto winter. However, afterward, DOT began to gradually rise. The indicators show that the token is experiencing bullish sentiment. If DOT faces bearish sentiment, though, it will trade in the support region at $4,656. DOT bullish price is $11.40.
By Leonardo Perez
