Polkadot Targets Further Gains, Eyes $8.6090 Mark After Impressive Breakout

Polkadot has made headlines with its impressive rebound, signaling a bullish momentum that could elevate its price by 15% to surpass the $8.6090 mark. This optimistic forecast follows DOT’s escape from a declining wedge pattern, culminating in an 82% surge to a peak not seen in several months.

The digital currency has embarked on a V-shaped recovery, bolstered by strong market support and broader bullish sentiment across the crypto landscape, with Bitcoin leading the charge. Rekt Capital, a renowned analyst and crypto trader, highlighted this movement as a successful retest of a crucial order block, setting the stage for a further upward trajectory.

$DOT

Polkadot has followed the blue path to perfection, dropping deep into the green area for a successful retest#DOT has rallied +28% to the upside since the retest, on track to completion the move via the blue path#Crypto #Polkadot https://t.co/jONQ3Isxbj pic.twitter.com/kS0uqqB9ZF
— Rekt Capital (@rektcapital) February 16, 2024

Moreover, technical analyses lend credence to the optimistic outlook. The Relative Strength Index (RSI), positioned at 60, suggests room for growth before the asset hits overbought territory. Additionally, the Moving Average Convergence Divergence (MACD) remains in negative territory, indicating that bullish forces continue dominating the market landscape.

Should the upward trend persist, DOT’s price might even approach the psychological $9.00 threshold, marking a significant milestone in its recovery journey. However, the market remains vigilant. A reversal, marked by profit-taking or a dip below the pivotal $6.6010 level, could signal a continuation of the previous downtrend, endangering the gains made thus far.

In a less favorable scenario, a potential reversal could occur if Polkadot fails to maintain its current trajectory and dips below the $6.6010 threshold. Such a scenario could trigger a downturn, pushing prices towards the $6.0000 psychological level, resulting in a 20% decline from current standings.

As of press time, Polkadot is trading on a bearish note as bears hold their ground tight across the broad market. DOT has traded in negative territory for most of today’s session, touching a daily low of $7.45. Currently, the price has climbed slightly above this point at $7.50, displaying a decrease of 3.25% in the past 24 hours amid the positive weekly increase of 6%.