Polkadot News Today: Polkadot Price Surges 1.40% Toward $5 Resistance

Polkadot (DOT) has been experiencing a strong recovery in its price, with the daily chart indicating renewed bullish interest. Currently, DOT is trading at $4.516, marking a +1.40% gain in the latest session. This rally has pushed prices to their highest level in weeks, drawing attention to the critical $5 resistance level. The momentum and technical indicators suggest that the price could continue to rise, but there is also a possibility of exhaustion.

The rally in DOT price began earlier this month and has since shown a nearly vertical climb on the Heikin Ashi daily chart. The last 10 candles have been mostly green, indicating minimal bearish pressure and confirming a strong bullish trend. The chart also reveals a break above previous resistance at $4.30, which has now turned into support. This breakout aligns with broader altcoin market strength and upcoming development milestones for the Polkadot ecosystem, particularly around parachain auctions and interoperability upgrades.

The Relative Strength Index (RSI) is currently at 76.90, which is above the standard overbought threshold of 70. This could raise caution flags for some traders, but in strong uptrends, such RSI levels often reflect bullish continuation rather than an immediate reversal. In April, when DOT price last crossed RSI 75, the price surged another +12% before pulling back. If the same percentage is applied now from $4.516, this projects a near-term target of $5.06, right above the key psychological resistance of $5.

Fibonacci retracement and extension levels also support the case for further upside. The $3.95 – $4.10 zone was the 0.382 zone, already broken, and the $4.30 – $4.50 zone acted as 0.618 and 0.786 retracement cluster. The next extension level stands at $4.89 (Fibo 1.272), with stronger breakout targets lying at $5.35 (Fibo 1.618). This layered resistance structure suggests that DOT price will likely face initial resistance around $4.89–$5.00, but if it breaches this zone, the next price magnet could be $5.35.

The Heikin Ashi candles show clear trend acceleration, with smaller wicks on both ends—a strong indication of trend strength. Polkadot price has broken out of its previous descending structure and has now formed a higher low followed by a higher high, a classic bullish reversal setup. Volume is also steadily increasing, suggesting institutional participation or whale accumulation. Unless there’s a sharp reversal in market sentiment, this structure points to a continued move toward $5 and beyond.

With RSI nearing overbought territory and Fibonacci targets aligning with psychological resistance, DOT price has a real shot at hitting $5 in the coming days. However, traders should watch for consolidation or profit-taking near $4.89. The short-term outlook for the next 7 days includes a bullish scenario where DOT price targets $5.06 and possibly $5.35, a neutral scenario with consolidation between $4.30–$4.60, and a bearish invalidation with a breakdown below $4.00.

Polkadot price technical setup looks clean and decisive. The breakout above $4.30 and sustained RSI strength suggest that this rally isn’t a fluke. While a short-term cooldown is possible, the broader structure hints at more upside potential, especially if the market continues to support altcoin momentum. If you’re already in, riding toward $5 with a trailing stop might be the play. If you’re on the sidelines, a dip to the $4.20 zone could offer a better entry—because if DOT price closes above $4.90, the bulls might not stop until $5.35.