Polkadot (DOT) has recently made a notable move, surging by approximately 16% as it aims to chart a course along the blue pathway highlighted by Rekt capital. The primary objective is establishing a secure footing in the orange zone above, transforming it into a robust support level. Failing to accomplish this could disrupt the current rebound trajectory marked by the blue path.
Consequently, this rally positions DOT for a potential uptrend, per insights from crypto analyst Rekt Capital. DOT’s break above a key descending trend line on Rekt’s weekly chart analysis is at the core of this optimism. This break is a classic bullish signal, often suggesting a shift from a downtrend to an uptrend. Moreover, a horizontal line, likely representing a crucial resistance or support level, adds to this narrative.
The chart’s intriguing aspects include several marked horizontal levels. These levels represent critical support and resistance points. Hence, they are crucial in understanding DOT‘s price movements. Additionally, annotations indicate potential price targets and the percentage gains needed. For instance, reaching $4.8957 requires a notable 105.01% increase from a certain base level.
However, the journey might be smoother with the current price action, having tested a significant resistance level, which hints at a possible retracement. Significantly, this is indicated by an upward blue arrow followed by a downward red one, suggesting a potential pullback before a further climb.
Fibonacci retracement levels on the chart also play a vital role. The 1.0 level, at around $7.4725, is particularly noteworthy. The price has already retraced to a key Fibonacci level, watched closely by traders for signs of trend reversals or continuations.
Moreover, the chart predicts future price movement, depicting a typical market pattern known as the “ABC” correction or “1-2-3” pattern. This move involves an initial value uptick, a retracement, and then a further upward movement.
Per the latest financial data, DOT’s value is $7.22, showing a 1.59% uptick in the past day. This development reinforces the bullish sentiment among market participants.
Polkadot’s current technical analysis paints a picture of potential bullish momentum. However, investors should monitor key resistance levels and possible retracements, part of the asset’s path to higher valuations. This dynamic scenario makes DOT a cryptocurrency to watch in the coming days.
