- Polkadot (DOT) is experiencing a strong resurgence, climbing towards $5 with a nearly 14% increase since hitting a low of $3.98 last week, fueled by bullish sentiment and strong technical indicators.
- Market optimism is high, but DOT faces significant resistance at the $5 mark, with potential support levels at $4.50, $4.40, and $4.20 if it fails to break through.
Polkadot (DOT) is experiencing a notable resurgence, resuming its push towards the $5 mark after enduring significant volatility and selling pressure earlier in the week. DOT has shown a remarkable turnaround, surging almost 14% since hitting a low of $3.98 last Wednesday.
Market Sentiment Turns Bullish
Market watchers are optimistic that DOT’s recent upward momentum could act as a catalyst, potentially driving it beyond the elusive $5 barrier—a level it has struggled to surpass since early August.
Can Polkadot Continue Its Rally?
Polkadot’s recovery began on September 18 when it dipped below $4, hitting a low of $3.96 due to intense selling pressure. However, the cryptocurrency quickly rebounded thanks to robust support, reclaiming the $4 mark the following day and pushing above the 20-day Simple Moving Average (SMA).
On Friday, DOT reached a daily high of $4.49, although it faced significant selling pressure, causing it to settle at $4.34 with a 1.88% increase. The momentum continued on Saturday, with DOT rising to $4.46 and pushing above the 50-day SMA after a nearly 3% gain. However, by Sunday, sellers had forced it back below the moving average, closing at $4.31.
Sellers made another attempt to drive DOT below the 20-day SMA but were unsuccessful as buying pressure remained strong. The current week began positively, with DOT gaining 3.48% and moving back above the 50-day SMA to $4.46. Bullish sentiment continued on Tuesday, with DOT climbing just over 4% and finally breaking above $4.50, settling at $4.64.
Is $5 and Beyond a Possibility?
The current trading session sees DOT up by over 3%, eyeing the $5 mark. Whether it can surpass this level remains to be seen, as sellers are expected to defend it vigorously. For now, buyers are in control, looking to challenge the bears’ resolve. DOT is currently forming an ascending triangle pattern, which suggests a potential jump to $5.10, especially after breaching the crucial $4.50 level. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators also point to bullish sentiment around the asset. Additionally, there has been a noticeable increase in retail interest.
Should DOT fail to break above $5, it might retrace to $4.50, where it could find support. A further drop below this level could see it fall to $4.40 or even $4.20.
Polkadot’s current price action and technical indicators suggest a strong bullish trend. While $5 remains a critical resistance level, the overall sentiment and recent performance indicate that DOT could potentially breach this mark. Investors should keep a close watch on the price movements and technical patterns to make informed decisions.
