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The cryptocurrency market has been on an accelerated recovery since the Bitcoin price breakout from $46000 last week. The major altcoins were quick to follow this momentum including Polkadot (DOT).
With the constant support from the ascending support trendline, the DOT price makes another bounce back to signal a breakout event. As the anticipations of a trend reversal grows, the Polkadot traders are ready to pay the premium. To find out if the DOT price will continue the run, read our Polkadot price prediction for a long-term picture.
Source – Tradingview
The last 3 months rally in Polkado (DOT) price can be traced using an ascending trendline on the daily chart. Utilizing this dynamic support, the buyers have managed to renew their recovery momentum during major market dips, indicating a strategy point of accumulation.
On February 5th, the DOT price witnessed its latest reversal from the aforementioned support leading to a 14.8% surge within two weeks. Amid this rally, the buyers managed to escape the triangle pattern consolidation further accelerating the bullish momentum.
Technical Indicators:
EMA Indicator: The 20-and-50-day EMA slope has acted as suitable support for DOT price during occasion pullbacks.
Bollinger Band: The coin price challenging the upper boundary reflect the buyers are the current dominating force in the market.
Will The DOT Price Sustain Breakout Momentum?
With the Polkadot price trend washing off the bearish vibes, the DOT price is showcasing a long jump amidst broader market recovery. Further, the altcoin price challenges the 23.60% trend based fib level, anticipating a breakout event for additional momentum.
In such a case, a prolonged bull run can place the DOT well above the $8, and rechallenge the last swing high of $9.6.
On the flip side, a bear cycle can retest the support trendline close to $7.
