Polkadot jumped by 5% today and reached its highest price level in ten months. The asset looks highly volatile on the daily chart with no sign of slowing down buying pressure.
DOT advanced bullish sentiment this week and exploded to a daily high of $7.69 – which is located near February’s high.
This explosion came after breaking out the neckline of a head & shoulder pattern on the daily. However, the price got wicked and dropped slightly from the daily high level. Currently, it is looking for strong support on the lower timeframe to resume upward movement.
On the daily chart, the asset held support at around $6, which broke out during this week’s surge. The bulls are in control but they are taking a brief break at the time of writing.
If the price bounces back on the lower timeframe and keeps closing strong by the day – just like what we saw in the past days – we can expect more rallies to take place in the coming days.
Otherwise, the price would continue to drop until it finds a solid level for a rebound. The recently broken neckline of the head & shoulder pattern is the level to watch for such a setup.
Right now, DOT looks extremely bullish on the daily chart with a parabolic movement. So far, DOT has posted more than 100% gains since it bounced back in October.
DOT’s Key Levels To Watch
As said earlier, a push above the current daily high could allow it to retake February’s resistance of $7.9, which serves as the current yearly high. Surging through it could allow the price to reach $8.6 and $9.7 by the end of the year.
Losing grip below $7 could cause drops towards $6.5 before testing the crucial $5.9 support – the mentioned neckline. We can expect a rebound from there.
Key Resistance Levels: $7.9, $8.6, $9.7
Key Support Levels: $7, $6.5, $5.9
- Spot Price: $7.1
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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