Polkadot (DOT) is currently priced at $5.15, breaking through several technical levels in recent days. The rising buying pressure and positive technical indicators suggest that DOT has the potential for further growth, while also highlighting key levels that could act as support or resistance.
Analysts Identify Key Resistance Levels
Analysts such as iamflez and i_bot404 have identified main resistance levels that could challenge DOT’s further upward movement. Although temporary profit-taking due to overbought conditions may occur, investors are focused on the asset’s long-term potential.
DOT Surpasses Key Levels and Tests Market Resilience
Polkadot’s daily chart shows that the price has moved above the upper Bollinger Band, now slightly above the $4.97 level. This movement suggests a shift to bullish territory, though a breakout above the upper Bollinger Band might indicate that the asset is overbought, increasing the likelihood of a correction or consolidation.
When Bollinger Bands expand, the market indicates higher volatility, which could signal a new trend.
Current support lies around $4.97 at the upper Bollinger Band, while the next resistance level is at the middle Bollinger Band line at $4.19. If DOT climbs above $5.50, the next target could be $7.575, which analyst iamflez considers a key resistance level.
Overbought RSI Signals Caution Amid Buying Pressure
The Relative Strength Index (RSI) is currently at 72.66, indicating an overbought condition.
Typically, an RSI above 70 signals overbought conditions, which may lead to a price pullback due to profit-taking. However, in strong uptrends, assets can remain overbought for extended periods as long as buying pressure persists.
Another analyst, i_bot404, sees $3.60 as a “mega-support” level, suggesting that if DOT’s price drops to this point, it would find strong support. Analysts have a long-term outlook on DOT, indicating it may be undervalued and could reach $16.20, potentially offering a 3–4x return from the current level.
Overbought conditions may slow further gains, especially if DOT encounters resistance around the $5.50 mark.
Analysts Consider Long-Term Growth Potential
With increased interest in Polkadot, analysts have set long-term targets, assuming favorable market conditions. Analyst iamflez highlighted $7.575 as the level to surpass in order to encourage further buying pressure and growth for DOT.
One user on X added that if DOT holds above the 200-day EMA, it could rally to $11, reflecting optimism regarding DOT’s future growth.
The recent price increase aligns with these long-term targets for DOT. If DOT maintains its current levels, it may continue its upward trend. Conversely, failure to hold these levels could lead to consolidation, testing long-term support around $4.19 and lower.
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