The price of Polkadot (DOT) surpassed both long-term and short-term levels of resistance, and it has yet to show proof that the bullish trend is turning around.
Since reaching the all-high of $55.10 in November 2021, the Polkadot value has been trading below a declining resistance line. Due to the reduction, the minimum price in December 2022 was $4.22. The entire downward movement was contained within the declining resistance line.
But in 2023, the Polkadot price started moving upward, leading to a breach of the resistance level. The breakout occurred after 427 days of the line’s existence. Such long-term structures frequently result in substantial upward movements and suggest the previously negative trend has finished.
However, the DOT price needs to retake the $6.80 resistance level to complete its positive turnaround. Since 2020, the area has served as support and resistance, making it essential.
However, the DOT price needs to retake the $6.80 resistance level to complete its positive turnaround. Since 2020, the area has served as support and resistance, making it essential.
The Polkadot price may rise to the next level at $9.30 if it successfully breaks through. If it’s turned down, it might end up in the $4 support range.
The weekly RSI leans positive, mirroring the price action, but hasn’t verified the bullish reversal. This is because it exited its bearish split trend line (black) but hasn’t risen above 50.
Jan’s Prediction For Polkadot Is Positive
The daily analysis shows the explanation for the continued Polkadot price growth. Before breaking out from a negative trend line at the end of December 2022, the daily RSI produced a bullish divergence (green line), then rose to 50. These three are all seen as positive indications.
On Jan 14, the DOT token price confirmed bullish analysis by breaking out from descending wedge pattern. Though reaching a high of $6.52, the Polkadot price was rejected by the resistance level and created a long upper wick.
The DOT coin price is trying to validate the $5.60 horizontal zone as support by being there.
If the successful, upward movement to the $7 resistance area is the probable prediction for Jan in Polkadot price. However, if the price breaks down, it will revert to the $4.50 resistance line of the wedge.
The optimistic Polkadot price projection for January is more likely due to the positive weekly readings.
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The probable outcome for DOT price in Jan. is a surge toward the $7 area with a potential breakout. However, if the daily close is below $5.60, it indicates the possibility of a decline back to the previous resistance level of $4.50.
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