Polkadot (DOT) has seen a significant increase of over 100% in the past month. The cryptocurrency broke out of a long-term downtrend channel, marking a significant price reversal. Following this breakout, DOT regained the $8 level, a level that has acted as resistance in previous cycles and is now being tested as support. Analysts are noting that this level is critical for the continuation of bullish momentum.
$8 Resistance Breaks
Polkadot has regained the $8 level, up 111% in the last 30 days. This rally is supported by strong optimism and increasing trading volumes. The $8 level, which previously served as resistance, is now being tested as support. The monthly chart shows Polkadot’s price moving towards the critical horizontal resistance level around $10. Historical data shows that the $10 level has historically served as both support and resistance. A successful breakout could allow DOT’s price to rise to $12.60.
“Polkadot closing above $8.61 by the end of the month would be a critical step for the crypto rally to continue,” Rekt Capital said.
Analysts predict that Polkadot’s price could surpass the $10 level if the bullish momentum continues. The next critical resistance level is located around $9.91, and breaking this level could pave the way for gains of $10 and beyond. The Simple Moving Average (SMA) on the daily timeframe continues to support DOT’s uptrend, reinforcing market optimism.
However, despite the uptrend, a downside reversal could see Polkadot’s price retest the critical $6.57 support level. In this scenario, strong downward pressure could push DOT’s price down to a significant $5 level.
Polkadot (DOT) is currently trading at $8.53 and is up 35.65% in the last 24 hours. Polkadot has a market cap of $13.14 billion and a 24-hour trading volume of $3.03 billion, representing a 271% increase.