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Can Polkadot (DOT) Retest the $9.5 Resistance Zone Following Its Recent Breakout?

The price of Polkadot (DOT) has surged from a crucial dynamic support line and broken through short-term resistance. It is expected to continue rising in the next few days.

Weekly Outlook

The decline from the long-term resistance zone at $9.5 for Polkadot (DOT) found support at the 20-week EMA (Exponential Moving Average) during the week from January 22 to January 28, 2024 (green arrows).

As the 20-week EMA typically acts as support in a long-term uptrend, bouncing from this line is significant, indicating a shift in overall sentiment from selling on rallies to buying on dips.

Indeed, the DOT price broke above last week’s highs, signaling strong buying pressure at higher levels.

The weekly RSI (Relative Strength Index) has formed a bullish divergence and is trending upward, supporting the possibility of further gains.

Therefore, the DOT price could potentially rise by 23.85% to retest the long-term resistance zone at $9.5 once again.

DOT/USDT weekly chart . Source: TradingView

Short-Term Resistance Breakout

The 4-hour chart shows that the DOT price has broken above the descending resistance line formed since the $9.5 level mentioned earlier.

This move has also helped the price break above a minor horizontal resistance at $7, confirming it as support on February 12th (green arrow).

This indicates that the correction from $9.5 has concluded, and DOT is in another rally.

The 4-hour RSI remains above the 50 level and is trending upward, showing that the bulls are in control of the market.

Therefore, the DOT price could rise to the nearest horizontal resistance at $8.5 in the next few days.

DOT/USDT 4-hourly chart . Source: TradingView

Conclusion

Technical signals suggest that DOT has completed a short-term correction and is ready to move higher. The nearest targets are $8.5 and potentially higher towards $9.5.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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