HomeLatest NewsPolkadot price analysis: DOT ready for 10% spike above $30

Polkadot price analysis: DOT ready for 10% spike above $30

Polkadot (DOT) has rebounded from a $23.04 low and could break to $33.00 if bulls maintain the upside momentum

Polkadot has rallied 11% in the past 24 hours to trade above $29.00 as bulls target more gains.

The immediate technical outlook suggests bulls have an opportunity to retest recent highs above $30. If the current trend holds, buy-side pressure could add about 10% to the DOT/USD pair in coming sessions.

Polkadot price outlook

DOT/USD retraced from its peak around $30.46 on 13 February, hitting a low of $23.04 on 15 February. The decline saw DOT price break below a major support level at $25.00, although aggressive buying meant bulls quickly bought the dip and rebounded above the support zone.

A fresh increase has pushed the pair above the 0.5 Fibonacci level of the decline from $30.46 high to $23.09 low. There has also been a clear break above a descending trend line and the 0.618 Fibonacci retracement level of the aforementioned downswing.

Currently, bulls are trying to keep prices above the 0.786 Fibonacci retracement level ($28.87) on the 4-hour chart.

DOT/USD 4-hour price chart. Source: TradingView

DOT price ready for leg up

Polkadot’s price action over the past few days has seen DOT/USD trade higher within an ascending parallel channel. Despite the minor correction witnessed yesterday, the cryptocurrency’s technical picture remains bullish short term.

DOT is trading above the 20-day EMA and the RSI remains above the midpoint to suggest bulls still have control. Even the MACD that has trended bearish over the past three days is suggesting a hidden bullish divergence as bears weaken.

The primary resistance zone at $28.00—$30.00 coincides with the middle line of the rising channel. A break above this level could see bulls target a swift move towards the upper boundary of the channel.

That would put DOT’s price around $33.00, with the 1.272 Fibonacci retracement level ($32.48) acting as a major upside barrier. Above this level, Polkadot’s price could rally to highs near $40.

DOT/USD downside

If DOT/USD fails to consolidate gains above $28.00, there is potential for a minor correction to the downside. There’s likely to be strong initial support near the 20-day EMA ($27.77). If this holds, a rebound towards the $30.00 will remain in the picture. However, the sell-off pressure will likely increase if the pair breaks below the ascending channel.

In this case, bulls will rely on support at the 0.5 Fibonacci level ($26.75) and the critical horizontal support line at $25.00. Further losses could see DOT/USD decline towards $23.00.

Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.