Polkadot Price Forecast: DOT needs to hold critical level to avoid slipping

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.

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