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Polkadot (DOT) price breaks out strongly, where’s the next target?

The price of Polkadot (DOT) bounced off from the previous long-term resistance and broken above the short-term resistance. It is expected to continue rising in the near future.

Weekly Outlook

The price of Polkadot (DOT) broke above the long-term resistance zone at $9.5 and confirmed it as support last week (green arrow).

This action marks the continuation of the uptrend that began in mid-October 2023 and confirms that the long-term trend has turned bullish.

The weekly RSI indicator has crossed into the overbought zone and is trending upward, indicating that the bulls have complete control of the market.

Therefore, the price of DOT could potentially rise to the next significant resistance zone at $16.5 in the near future. This figure corresponds to a 40.46% increase from the current price level.

Therefore, the price of DOT could potentially rise to the next significant resistance zone at $16.5 in the near future. This figure corresponds to a 40.46% increase from the current price level.

DOT/USDT weekly chart. Source: TradingView

Short-Term Breakout

The 4-hour chart shows that the DOT price experienced a strong sell-off after reaching its yearly high at $10.8 on March 5th (red arrow). This indicates that selling pressure at this level is very strong.

However, after regaining momentum and forming higher lows in the following days, the DOT price broke above the $10.8 zone and confirmed it as support on March 13th, 2024 (green arrow). It means the bears have been eliminated from the market.

The 4-hour RSI is above 50 and trending upwards, supporting the possibility of further upward movement.

Therefore, the DOT price may rise to the nearest horizontal resistance zone at $14 in the coming days.

DOT/USDT daily chart. Source: TradingView

Conclusion

The most probable outlook suggests that the DOT price will continue to rise in the near future. The nearest target is $14 and further towards $16.5.

The bullish view will be invalidated if the DOT price closes a weekly candle below the $9.5 zone.

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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