Polkadot (DOT) is on the verge of a significant breakthrough as it nears a crucial resistance level of $7.60, showing promising signs of upward momentum. There’s been a notable rise in open interest surrounding Polkadot, adding to the anticipation of further gains.
With many indicators favoring a bullish outlook, analysts are optimistic about DOT’s potential to surpass the $7.60 resistance and aim for the $8 milestone.
After a period of consolidation, where DOT fluctuated between $6 and $7 for much of the previous week, the cryptocurrency appears poised for a bullish surge. Despite facing resistance around the 200-day SMA, preventing DOT from surpassing $7, the weekend witnessed significant price movements, with buyers gaining control and pushing DOT past the 200-day SMA. This resulted in an 8.38% increase on Saturday, reaching $7.24. Although there was a minor drop on Sunday, DOT managed to maintain above $7, closing at $7.14. Monday continued the bullish trend, with a 4.62% increase, settling at $7.47, as buyers aimed to challenge the resistance at the 20-day SMA.
Currently trading at $7.48, buyers are eager to propel DOT towards the $8 mark.
Examining the DOT price chart reveals strong support at $7, backed by the 200-day SMA, with a secondary support level at $6.40. In the short term, the 20-day SMA and the 200-day SMA serve as crucial reference points for DOT’s trajectory, potentially influencing its movement in the coming weeks. As DOT approaches the critical resistance level of $7.60, breaking past the 20-day SMA could trigger a significant rally, potentially surpassing $8 and aiming for the 50-day SMA at $9. Conversely, a reversal could see DOT retreat to $7, with further downside pressure leading to a drop to $6.40.
Analyzing the indicators, the MACD has turned bullish, suggesting continued upward momentum, although a shift in control to sellers could revert it to a bearish stance. Meanwhile, the Parabolic SAR remains bearish. Additionally, a noted crypto analyst has pointed out a pattern on the Polkadot price chart, indicating a possible bullish breakout, supported by current bullish signals.
On-chain metrics support the optimistic outlook, with a drop in the funding rate on April 22nd, typically preceding a price increase, and an uptick in open interest suggesting potential for further short-term gains. The Relative Strength Index (RSI) also indicates a move towards neutral territory, further reinforcing the positive sentiment surrounding Polkadot’s prospects.
