Polkadot (DOT) Price Poised for a 30% Surge in the Coming Days
The price of Polkadot (DOT) has flipped a crucial EMA (Exponential Moving Average) line as support and has broken above a short-term pattern. It is expected to continue rising in the near future.
The price of Polkadot (DOT) has surged since creating bullish divergences below the important support zone at $4.3 from September 4th to October 23rd, 2023 (green ellipse). These divergences are considered bear traps and are often followed by very strong upward movements.
Indeed, the price of Polkadot (DOT) has broken above the 20-week EMA and confirmed it as support in the week from November 20th to 26th (green arrow).
This is a bullish development as the 20-week EMA often acts as significant support in an uptrend. It indicates a shift in sentiment from selling during the rise to buying during the dip and is more meaningful on the weekly timeframe.
The weekly RSI is rising and is above 50, supporting the continuation of the upward trend.
Therefore, the DOT price is likely to continue rising to the next crucial resistance zone at $7.6, an increase of 33.66% from the current level.
Short-Term Pattern Breakout
The 4-hour chart supports the bullish perspective from the weekly timeframe. It shows that the DOT price has broken above a descending parallel channel, formed after the rejection from the $5.7 resistance zone on November 12th (red arrow).
This indicates that the short-term correction has ended, and DOT has initiated a new upward trend. In fact, the DOT price confirmed the resistance line of the channel as support on December 1st (green arrow).
The 4-hour RSI is above 50 and sloping upward, showing the advantage lies with the bulls.
Therefore, the DOT price may break above the $5.7 resistance zone and rise to the next resistance at $6.9.
The most likely scenario suggests that the DOT price will continue to rise in the near future. The immediate target is $6.9, with a higher target at $7.6.
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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