Polkadot (DOT) Price Breaks Out Of Important Resistance, Here’s The Next Target
The price of Polkadot (DOT) has broken above a significant resistance level and displayed short-term bullish signals. It is expected to continue rising in the near future.
The price of Polkadot (DOT) has been rising since forming a bullish engulfing pattern at the long-term support zone of $3.7 during the week of October 16 to 22 (green arrow).
This move helped the price break above the strong resistance zone at $4.3, formed by the long-term descending resistance line and the previous support zone.
This is a very bullish signal as it indicates that the previous crash was just a deviation, and a strong uptrend might follow.
The weekly RSI (Relative Strength Index) has broken above the resistance line and surged above the 50 level. Both are bullish signals, supporting the possibility of further gains.
Therefore, the price of DOT is likely to continue rising towards the next resistance zone at $5.6.
Breaking above this level will confirm that the long-term downtrend has ended. Afterward, the price of DOT could rise to the long-term resistance zone at $7.5.
Short-Term Resistance Breakout
The daily chart supports the bullish outlook from the weekly timeframe. It shows that the DOT price has broken above the horizontal resistance level at $4.7 and confirmed it as support yesterday (green arrow).
This suggests that sentiment has shifted from selling on the rise to buying on the dip.
The daily RSI also signals a bullish momentum as it enters the overbought zone without creating any bearish divergence.
The most likely scenario indicates that the DOT price will continue to rise in the near future. The potential target for this move is $5.6.
Breaking above this level will confirm the end of the downtrend, and the DOT price could rise to the next resistance zone at $7.5.
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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