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As Polkadot (DOT) Price Reaches 200-Day High, Is $10 Now on Horizon?

3 mins
Updated by Geraint Price
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In Brief

  • The Polkadot (DOT) price moved above the $5.50 horizontal area and is currently attempting to validate it as support.
  • The weekly Relative Strength Index (RSI) and the Elliott Wave count both provide a bullish outlook for the future price.
  • Despite this bullish Polkadot price prediction, a weekly close below the $5.50 area can trigger a sharp price decrease.
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The Polkadot (DOT) price has increased for four consecutive weeks, culminating with a high of $5.90 this week.

The upward movement caused a breakout from a descending resistance trend line and reclaimed two horizontal resistance areas.

Polkadot (DOT) Continues Ascent

In the analysis of DOT’s weekly time frame, it is observed that the price experienced a decline below a descending resistance trend line starting from February, reaching a low point of $3.56 in October.

This downward movement resulted in a breach of the crucial $4.40 horizontal support area, which had previously served as a support level since the beginning of the year.

Nevertheless, there has been an upward movement in the DOT price over the past four weeks. The Polkadot price broke out from a descending resistance trend line in October and reached a high of $5.90 this week, the highest price in 200 days. The high reclaimed the $4.40 and $5.50 horizontal areas. 

Read More: What Is Polkadot (DOT)?

Traders commonly employ the Relative Strength Index (RSI) as a momentum indicator to evaluate market conditions, determining whether an asset is overbought or oversold and deciding when to buy or sell.

A reading above 50 on the RSI, coupled with an upward trend, signals an advantage for the bulls. Conversely, a reading below 50 indicates the opposite.

Presently, the RSI is on the rise and stands above 50.

DOT/USDT Weekly Chart
DOT/USDT Weekly Chart. Source: TradingView

Polkadot’s decentralized exchange (DEX) Polkadex announced it was partnering with TradingView to give Polkadex users seamless access to price charting and technical analysis tools. This allows them to have a centralized exchange (CEX)-like trading in a DEX.

What Are Analysts Saying?

Cryptocurrency traders on X (formerly Twitter) are predominantly bullish.

DavidOnCrypto believes that the price will reach double digits soon. He stated that:

“Breakout done

“Retest happening

“Full Send Continuation soon?”

DOT/USDT Weekly Chart
DOT/USDT Weekly Chart. Source: X

Rektcapital has shown a similar breakout from a descending resistance trend line, but his main resistance is at $8.

Nebraskangooner says that the price will keep pushing upward but has not given a target for the future movement.

DOT Price Prediction: Can Price Reach Double Digits?

Technical analysts apply the Elliott Wave theory to identify recurring long-term price patterns and understand investor psychology, aiding in trend direction determination.

The prevailing Elliott wave count suggests that the Polkadot price completed a five-wave downward movement (white) since its all-time high in November.

If accurate, this signals the initiation of a new movement in the opposite direction. Whether this marks the onset of a bullish trend reversal or an upward correction remains uncertain, but both scenarios anticipate a significant DOT price increase.

Read More: How To Stake Polkadot (DOT)

The bullish divergence in the weekly RSI since the start of the year further supports the ongoing upward momentum. Such divergence typically manifests at trend bottoms, preceding bullish trend reversals.

The significance of this bullish divergence is heightened by its alignment with the reclamation of the $4.40 area and the conclusion of a five-wave downward movement.

Should the altcoin’s increase continue, the next resistance is projected at $10, representing a 90% increase from the current price.

DOT Price Prediction
DOT/USDT Weekly Chart. Source: TradingView

Despite this bullish forecast for DOT’s price, a weekly close below the $5.50 horizontal area can trigger a sharp fall, initiating a 20% DOT price decrease to the $4.40 horizontal support area.

Read More: 9 Best AI Crypto Trading Bots to Maximize Your Profits

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto platforms in the US | February 2024

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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