DOT Bulls Eye $7.50 as Polkadot Rallies After Breakout from Key Bullish Pattern

• Polkadot (DOT) broke out of a falling wedge, rallying 7.23% in 4 hours, with targets at $7.10-$7.50.
• DOT trades above key support at $5.20, with resistance at $5.90, $6.30, and $6.70 signaling potential consolidation zones.
• Bullish indicators: DOT holds above the 50 and 200 EMAs, with RSI at 66.35, suggesting further upside before overbought levels.

According to market analyst Ali, Polkadot’s (DOT) price movement is showing strong bullish momentum. The token recently experienced a breakout from a falling wedge pattern, often associated with upward price movement. DOT has surged by 7.23% within four hours, reaching $5.535. This rally places the next price targets in the $7.10 to $7.50 range, aligning with technical resistance levels.

Key Support and Resistance Levels

The breakout zone of $5.20 now serves as immediate support. Below this, the $4.90 level acts as a secondary support point, previously tested during the consolidation phase. On the upside, DOT faces resistance near $5.90, with additional hurdles at $6.30 and $6.70. These areas could slow the upward momentum, as historical data shows price rejections here.

The technical indicators further solidify this outlook. Notably, a blue moving average line, representing a short-term average the 50-period MA, is currently providing dynamic support. The price continues to trade above this moving average, reinforcing the bullish sentiment.

Moving Averages and RSI Indicate Continued Momentum

The 50-period exponential moving average (EMA) is positioned at $5.082, offering strong short-term support. Meanwhile, the long-term 200 EMA sits at $4.544. DOT’s price remains well above both averages, signaling strength in the ongoing trend. The recent golden cross, where the 50 EMA crosses above the 200 EMA, typically indicates long-term bullish momentum.

The Relative Strength Index (RSI) currently stands at 66.35, reflecting strong buying interest without yet reaching overbought territory. This metric suggests room for further gains, although a reading above 70 could lead to temporary price consolidation.

Market Behavior Post-Breakout

The bullish breakout has heightened trading activity. If DOT maintains its position above $5.20, the next price movement could target the $6.00 psychological level and potentially higher. However, short-term profit-taking near resistance zones like $5.90 and $6.30 may trigger brief pullbacks. The $5.70-$5.75 range, where the current price hovers, represents a pivotal area that could determine the short-term direction.