Charted: Polkadot (DOT) Surges 35%, Key Resistance Turned Support at $10.5 - SMARTNAIRA

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Wednesday 13 January 2021

Charted: Polkadot (DOT) Surges 35%, Key Resistance Turned Support at $10.5

Polkadot’s DOT started a strong surge after it broke the $10.00 resistance against the US Dollar. It is up over 35% this week, and it outperformed bitcoin.

  • DOT gained pace above the $9.50 and $10.00 resistance levels against the US dollar.
  • The price traded to a new yearly high at $11.60 and settled well above the 100 simple moving average (4-hours).
  • There was a break above a key bearish trend line with resistance near $9.35 on the 4-hours chart of the DOT/USD pair (data source from Kraken).
  • The pair could correct lower, but the previous resistance at $10.50 might provide support.

Polkadot’s DOT Rallies Above $11

After testing the $7.20 zone, DOT started a fresh increase above the $8.50 resistance level. The bulls gained strength, resulting in a solid push above the $9.00 pivot level.

There was a clear break above a key bearish trend line with resistance near $9.35 on the 4-hours chart of the DOT/USD pair. It opened the doors for a steady increase above the $10.00 level. The bulls pushed the price above the 76.4% Fib retracement level of the downward move from the $10.71 swing high to $7.18 low.

It even broke the last swing high near $10.71 and settled well above the 100 simple moving average (4-hours). Finally, there was a break above $11.00 and the price tested the $11.60 zone.

Polkadot (DOT)

Source: DOTUSD on TradingView.com

It seems like the price is facing hurdles near $11.50-$11.60. It represents the 1.236 Fib extension level of the downward move from the $10.71 swing high to $7.18 low. It seems like there could be a downside correction from the $11.50 level.

On the downside, the previous breakout zone near the $10.70 and $10.50 levels could act as a strong support. Any more losses could lead the price towards the $9.00 support zone.

More Upsides?

If DOT price starts a fresh increase, it could easily clear the $11.50 and $11.60 resistance levels. The next major resistance on the upside could be near the $12.00 level.

A close above the $12.00 may possibly open the doors for a sustained upward move. In the stated case, the bulls might aim a test of the $15.00 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 now well above the 60 level.

Major Support Levels – $11.00, $10.70 and $10.50.

Major Resistance Levels – $11.50, $11.60 and $12.00.



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