Polkadot ($DOT ) has been making waves in the crypto market, and recent analysis suggests a strong upward potential. After a significant rally from $5 to $11, followed by a healthy correction, many traders are wondering if DOT can break its last high of $12. Based on technical analysis and market conditions, there's a solid case for DOT to move past that level and even reach new highs in the coming months.
Bullish Technical Setup
Looking at the charts, the growth from $5 to $11 resembles the first wave of a larger bullish cycle. This upward move aligns with an Elliott Wave structure, where we’re now entering wave 3, which typically experiences rapid growth. The recent price correction, completing an ABC pattern within the 0.61 Fibonacci retracement zone, signals that DOT is poised for its next leg up.
Market Sentiment and Breakout Potential
The broader crypto market’s sentiment is a key driver for altcoins like DOT. With Bitcoin and Ethereum showing strength, altcoins could follow suit and reach new heights. DOT’s increasing ecosystem development, especially its parachain technology, adds further support to its bullish case.
What’s Next for DOT?
The immediate resistance at $11–$12 will be crucial. If DOT breaks this level, it opens the door for higher targets, with our forecast for the next two months in the range of $19–$22. Additionally, the green signal from the Bullish/Bearish Reversal Bar Indicator strengthens the case for a continued rally.
In conclusion, Polkadot (DOT) has the potential to not only break its previous high of $12 but also reach new highs. Traders should watch for a breakout above this resistance as the next key sign for a continued bullish run.
