Polkadot Surges 20% And Could Soon Test $25: Price Analysis

Polkadot surges 20% and could soon hit the $25 level after successfully clearing the $20 level against the US dollar. It is now trading with strong bullish sentiment and could soon accelerate higher above $25 as we read more in our latest altcoin news.

DOT rallied above $18.80 and the $20 resistance level against the US dollar with the price trading nicely above the $20 support and the 100 simple moving average. There was also a break above the contracting triangle resistance at $16.50 on the 4-hour charts with the pair remaining in a strong uptrend and could even rise above $22.00 and $23.20.

After forming a new support base of $14.50, DOT started a new rally and a strong bullish momentum too with the price breaking many important hurdles at $16.50. There was also another break above the major contracting triangle with the resistance of $16.50 on the 4-hour charts of the pair when it opened the doors for a larger increase and the price even managed to clear the range resistance of $19.00. the bulls managed to boost the price to $20 and settled above the 100 simple moving average as the new monthly high was formed near $21.80.

The initial support on the downside is close to the $20.40  level and close to the 23.6% fib retracement level from the recent increase at $15.72 swing low to the $21.80 high. On the upside, the 21.80 and the $22.00 levels there are some hurdles so a clear break above the $22.00 level will open the doors for a new surge to $23.20 and the $24.00 levels with the next resistance being set at $25.00. If DOT fails to continue higher above $21.80 there could be short-term downsides correction too. The first key support is near the $20.40 and the $20.20 levels.

The next major support is near the $19.00 level and it is also close to the 50% fib retracement level from the low level of $15.72 to the $21.80 high. More losses could call for a drop to $17.20. The 4-hour MACD for the pair is gaining momentum in the bullish zone and the 4-hour RSI is above the 60 levels. Polkadot surges 20% with the major support levels set at $20.40, $20.20, and $19.00.

As recently reported, Now, many developers are choosing to build their DeFi applications on Polkadot and want to take advantage of the unique properties and to start offering experiences that were not possible yet on other blockchains.