Polkadot (DOT) price broke above an important resistance level and gave short-term bullish signals. It is expected to continue rising in the near future.
Weekly View
Polkadot’s price has been rising since it formed a bullish engulfing formation within the long-term support zone at $3.7 during the week of October 16-22 (green arrow).
This move helped the price climb above the strong resistance area at $4.3 formed by the long-term descending resistance line and the previous support area.
This is a very bullish signal as it indicates that the previous crash was just an aberration and a strong uptrend may follow.
The weekly RSI (Relative Strength Index) broke above the resistance line and rose above the 50 level. Both are bullish signals and support the possibility of further gains.
Because, altcoin The price is likely to continue rising towards the next resistance zone at $5.6.
A break above this level will confirm the end of the long-term downtrend. Later, DOT price might rise to the long-term resistance zone at $7.5.
Short Term Resistance Break
Koinfinans.com As we reported, the daily chart supports the bullish outlook in the weekly time frame. It shows that DOT price broke above the horizontal resistance level at $4.7 and confirmed it as support yesterday (green arrow).
This indicates that sentiment has shifted from selling on the rise to buying on the decline.
The daily RSI also indicates bullish momentum as it entered the overbought zone without creating any bearish divergence.
In conclusion
The most likely scenario suggests that the Polkadot price will continue to rise in the near future. The potential target for this move is $5.6.
Breaking above this level will confirm the end of the downtrend and the DOT price may rise to the next resistance zone at $7.5.