- Polkadot price is trading right above an important support level on the 4-hour chart.
- The digital asset has been under consolidation for the past three days.
- There is not a lot of resistance on the way up for DOT bulls.
Polkadot established an all-time high at $46.8 on April 3 and has experienced a healthy correction since then, down to $40.66. The digital asset is trying to form a local bottom to see a new high in the short term.
Polkadot price must defend the 50 SMA support level
On the 4-hour chart, Polkadot has established a robust support level around $40.7, which also coincides with the 50 SMA. Losing this significant support point will quickly drive Polkadot price down to $39.4, which is the 61.8% Fibonacci level.
DOT/USD 4-hour chart
If this level is lost, DOT can fall as low as $37.13 at the 50% Fib level as the support below is relatively weak given the magnitude of the rally towards the all-time high.
On the flip side, defending the support level at $40.7 should push Polkadot price towards $42.7 at the 78.6% Fibonacci level. There is not a lot of resistance towards the all-time high at $46.8, which means bulls can drive DOT towards this level eventually.