- Polkadot surged from $4.00, supported by a bullish breakout from a symmetrical triangle pattern.
- EMAs confirm upward momentum, with DOT trading significantly above the 50 EMA at $6.565.
- RSI indicates overbought conditions, signaling potential for short-term corrections or consolidation.
According to market analyst Ali, Polkadot (DOT) has shown a notable upward movement in recent weeks. Starting at approximately $4.00, the cryptocurrency experienced a notable bullish rally, reaching around $6.00.
Following this initial movement, the price entered a consolidation phase, marked by a symmetrical triangle pattern. This phase demonstrated lower highs and higher lows, creating market indecision before a decisive breakout occurred.
Key Levels Define Market Direction
The breakout from the triangle pattern drove DOT’s price higher. Key support levels were observed at $4.00–$4.50 and $5.00 during earlier accumulation and retest phases. As the price ascended, the $6.00 level transitioned from resistance to potential support.
At press time, Polkadot was trading at $8.89 and is approaching the psychological resistance of $9.00. The earlier consolidation provided a base for the ongoing rally, which is characterized by steep trendlines and strong buying pressure.
Technical Indicators Confirm Bullish Momentum
Exponential Moving Averages (EMAs) further confirm this trend. The 50 EMA, positioned at $6.565, and the 200 EMA, at $5.225, are both well below the current price, emphasizing the strength of the rally. The widening gap between these EMAs indicates accelerating upward momentum.
However, the RSI currently reads 77.96, indicating overbought conditions, which may prompt short-term corrections or consolidation. Immediate resistance stands at $10.00, with further targets around $12.00 if the rally continues. On the downside, support is likely at $8.00 or the 50 EMA. These levels will be critical to assess the next phase of Polkadot’s price movement.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
