Polkadot is currently consolidating within a sideways range, with support at $5.50 and resistance at $6.50. This consolidation comes after a strong rally in early February, where DOT surged to highs above $7.50.
The daily chart shows that the 50-Day MA is acting as resistance, while the 200-Day MA is providing support. This suggests that the short-term trend is bearish, while the long-term trend is bullish.
The RSI is currently in overbought territory, indicating that DOT may be due for a pullback. However, the Stochastic Oscillator is still bullish, suggesting that there is still momentum behind the uptrend.
**Possible Scenarios:**
**Bullish Scenario:** If DOT breaks above $6.50, it could rally towards the next resistance level at $7.50. A sustained break above this level could lead to a further extension of the uptrend
**Bearish Scenario:** If DOT falls below $5.50, it could decline towards the next support level at $4.50. A break below this level could signal a deeper pullback