$48 is the key support level.
$54; $71 are key resistance levels.
Polkadot has risen above $50, breaking its all-time high, and appears poised to rise further.
The structure discussed in our weekly analysis has broken to the upside, and DOT is now in the price discovery phase. The price is currently retesting the breakout, and if it can successfully hold above the key support at $48 (which was resistance), DOT could enter a steep rally towards $54 and $71.
Technical Indicators for DOT Prices
Trading Volume: There was a lot of activity on the breakout. This boosts the current price action’s confidence and strength. If the volume remains high, it is very likely that the trend will continue.
RSI: The RSI has not broken above 70 points on the daily timeframe, indicating that bulls still have a lot of room to push DOT higher. As DOT enters price discovery, this could be the start of a major rally.
MACD: The histogram and moving averages have turned bullish on this daily timeframe breakout. This is a significant bullish sign, indicating that DOT may continue to rise for some time before a correction occurs.
DOT is currently very bullish. Any break above the all-time high indicates that market participants are willing to pay more to hold a specific cryptocurrency. DOT has just signaled to the market that it may be undervalued and may enter a rally until a new balance between bulls and bears is found.
DOT Price Prediction in the Short Term
In the near future, DOT may remain around $50. However, if the current retest of resistance turned support at $48 is successful, DOT is a strong candidate for a sustained rally that could take it to $70 and beyond in the coming weeks. Maintain vigilance, however, as the coming weeks are likely to be extremely volatile.