Polkadot (DOT) is currently experiencing a correction from its recent peak at $7.75 against the US Dollar in the latest market developments. Nevertheless, there are optimistic indicators suggesting a possible rebound, contingent upon the price maintaining its position above the crucial support level of $6.30.
Following a consolidation phase above the $5.50 support, the DOT price initiated a noteworthy uptrend. Surpassing resistance levels at $5.85 and $6.00, DOT entered positive territory alongside major cryptocurrencies like Bitcoin and Ethereum.
The rally extended beyond the $6.65 resistance zone, and Polkadot established itself above the 100 simple moving average (4 hours). Nevertheless, a pullback ensued near the $7.75 mark, forming a peak around $7.77, leading to a corrective phase.
Polkadot (DOT) Resilience
The price dipped below $7.20 and $7.00 levels, breaching the 61.8% Fibonacci retracement level of the upward movement from the $6.31 swing low to the $7.77 high. Despite this correction, Polkadot maintains its position above the $6.65 zone and the 100 simple moving average (4 hours).
Analyzing the 4-hour chart of the DOT/USD pair reveals a crucial bullish trend line emerging with support around $6.65. This trend line aligns closely with the 76.4% Fibonacci retracement level of the upward trajectory from the $6.31 swing low to the $7.77 high.
The immediate resistance is anticipated near the $7.05 level, with a subsequent major hurdle at $7.20. A breakthrough beyond $7.20 could trigger a robust rally, potentially propelling the price toward $7.75 in the short term. Further upside movement might encounter resistance at the $8.00 zone.
Conversely, failure to initiate an upward move above $7.05 could result in continued downward pressure. Initial support lies near the $6.65 level and the associated trend line. A more substantial support zone is identified around $6.30, below which a decline to $5.70 may be on the horizon. Additional losses might open the doors for a move towards the $5.00 support zone.
The 4-hour MACD for DOT/USD is currently showing increasing momentum within the bearish zone, indicating a shift toward a bearish trend. Concurrently, the 4-hour Relative Strength Index (RSI) for DOT/USD has descended below the 50 level, further confirming the prevailing bearish sentiment.
In terms of key levels, significant support is identified at $6.65, followed by pivotal levels at $6.30 and $5.70. On the upside, notable resistance levels to monitor include $7.05, $7.20, and $7.75. These levels will likely play a crucial role in determining the near-term price dynamics of Polkadot (DOT) against the US Dollar.