Polkadot Surges 11.48% in 24 Hours, Breaks $3.80 Resistance

The price of the DOT token has been on an upward trajectory, following the general market trend. Technical analysis indicates that the bulls need to overcome important resistances to maintain this momentum. The Polkadot price has remained above the rising trend line, which is acting as a strong support level. If the price starts to fall, it is likely to experience a hard stop at this support level.

The DOT token currently has strong support at the 0.382 Fibonacci retracement zone, which has historically functioned as a robust support level. If a bearish movement occurs, the Polkadot token could potentially bounce several times from this level. Despite the long-term bearish trend in the DOT price performance, the coin is expected to continue surging. With the current price of Polkadot above the $4 level, there is potential for the price to rise even higher towards new resistance levels.

Today’s breakout was triggered by the Polkadot price surpassing the $3.80 resistance, which had previously prevented the price from rallying. This level was part of a falling wedge pattern and below an important Fibonacci retracement range. The wedge had been hovering around the $3.70 resistance before a breakout from the upper trendline occurred. This breakout suggests that the token is poised for an explosive rise, as the long-term price channel has now been broken.

The falling wedge pattern is known to cause breakouts, and this was evident in the recent price action. As the trendlines of the falling wedge converged, sellers lost control, leading to a breakout. With this long-term price channel now broken, the token is expected to see an explosive rise. The price has experienced an upward surge of 11.48% in the last 24 hours, standing at $4.16 with an 18.54% weekly surge. However, compared to its value one month ago, the DOT coin has seen an 11.91% decline, and the yearly performance shows a 43.47% decrease.

The DOT/USD daily chart shows that the Polkadot price has been rising steadily. The RSI score of nearly 70 indicates that the Polkadot token has entered an overbought zone, which could be dangerous. However, with the ADX indicator showing a score of 44, the trend strength can hold for longer. Both volume and strength are increasing, setting the price to reach new peaks. If the RSI continues to climb in the overbought zone, a bearish reversal could occur.

With the current price level continuing its rise to new highs and the strong resistance behind it, DOT is set to soar. The strong $3.80 resistance now acts as support, which is essential for the future. Despite the strength in the trend and the bullish technical signs, remaining vigilant to market developments is essential.

Polkadot (DOT) has recently surged past the $4 mark, demonstrating strong bullish momentum. The Relative Strength Index (RSI) for DOT is currently at 44.60, indicating that the token is in a neutral position, neither overbought nor oversold. This neutral RSI value suggests that there is room for further price movement, whether it be a climb to new highs or a potential correction.

The recent price action of DOT has been characterized by a rebound from a key support level at $3.70, followed by a break above $3.85. This movement has confirmed a short-term bullish reversal, with the price now eyeing the $4.00 resistance level. The daily chart reflects a clear intraday reversal pattern, with the price dipping to a low of $3.70 before recovering to an intraday high of $3.93. The RSI on the daily timeframe is moving upward but remains below overbought territory, signaling room for further gains. The MACD has started to converge toward a bullish crossover, hinting at a potential continuation of the upward movement if momentum holds.

The 4-hour chart confirms that DOT has broken the downtrend structure with a clean bounce from $3.70, forming a higher low followed by a strong bullish impulse. Each subsequent candle since the afternoon has closed higher, with the price reclaiming the $3.85 level and retesting it as support before continuing higher. This marks a short-term trend reversal in the 4H structure. The 20-period EMA on the 4-hour chart has turned upward and is now aligned beneath the price, acting as dynamic support. Momentum indicators show strength, with the RSI crossing 60 and moving toward the bullish zone. The MACD line is accelerating above the signal line, confirming buyers are in control. A sustained hold above $3.85 will be key for continued upside toward the $4.00 mark, with intraday resistance still at $3.93.

The recent upward trend of DOT has been driven by rising buying pressure and a sustained upward push during the latter part of the trading session. This rebound was supported by the network's strong multichain protocol architecture and investor confidence, which has been bolstered by the Sinai Upgrade on its Acala Network. The network's significant activity and utility are further evidenced by over 32 million transactions validated in October 2024 by the Polkadot Relay Chain, as well as a notable increase in unique wallets, signaling growing user adoption and engagement.

Looking ahead, the long-term potential of DOT depends on broader market conditions and continued updates to its multichain ecosystem. While its all-time high of $55 remains distant, DOT’s infrastructure and accessibility through major wallets make it worth considering for those willing to navigate market volatility. According to long-term predictions, Polkadot is projected to reach up to $10 by 2027, with a maximum price of $51.49 predicted for 2031. However, reaching $100 for Polkadot in the near term is considered highly ambitious and unlikely.