Polkadot's DOT Surges 8%: Recovery or False Hope?
1min read Polkadot, a cryptocurrency known for its interoperability and scalability, has shown signs of recovery in recent trading sessions. The price of DOT, Polkadot's native token, surged nearly 8% in the last trading session, jumping from an opening value of $4.809 to close at $5.227. This price action has sparked hopes of a potential reversal in the prolonged downtrend that the cryptocurrency has been experiencing.
However, the sustainability of this momentum depends on whether DOT can overcome key resistance and support levels. Technical indicators, such as the Relative Strength Index (RSI) and Moving Averages (MA), suggest a cautious bullish outlook for DOT as it seeks further upside momentum.
Polkadot's recent surge has brought it closer to critical technical levels. The 50-day MA is at $6.272, while the 200-day MA is at $5.646. These MAs act as major resistance levels, and a successful breach above them would confirm a bullish trend. However, at the time of writing, DOT remained below the Ichimoku Cloud, indicating that it has yet to fully break out of bearish territory.
The RSI sat at 42.78, which was still below the neutral 50 mark. This suggests that while DOT is recovering, it is not yet in bullish territory. If the RSI crosses above 50, it would signal increasing bullish momentum.
Fibonacci retracement and pivot point analysis provide additional insights. DOT was testing the S1 support level at $5.174 at the time of writing. If this level holds, a move toward the R1 resistance at $7.00 could follow. However, a rejection from this point could push DOT back to its S2 support at $4.50. A break below this level would invalidate the recovery narrative, putting DOT at risk of further downside.
For DOT to sustain its recent gains, it needs to break above $5.646 (200-day MA) and establish support above $6.272 (50-day MA). The RSI also needs to strengthen above 50 to confirm increasing buying momentum. A strong close above these levels could pave the 
