NewsletterDOT Price Analysis: $8.8 Breakout Gives Green Flag For 28% Jump
The Polkadot(DOT) buyers plan to end the past two months’ consolidation with today’s bullish breakout from the $8.8 resistance. Moreover, this breached resistance being the prior swing high indicates the buyers are preparing to extend the recovery rally higher. Can the potential rally surpass $10.6
Key points:
- The DOT chart showcase five consecutive greens candles on the weekly chart
- The rounding bottom pattern sets the coin price for a 28% rise
- The 24-hour trading volume in the Polkadot coin is $628.5 Million, indicating a 88% gain.
Source-Tradingview
The DOT/USDT pair showcases a premature rally under the influence of a rounding bottom pattern. The altcoin is currently trading at the $9.21 mark, registering a $47.5 gain within a month.
However, since July 11th, the DOT price resonated within the consolidation phase of this pattern, stretching from $8.81 to $6.25. Today, the coin price witnessed a sudden surge in buying pressure, pushing the price above $8.81 with a 6.71% gain.
This bullish breakout backed by 20% in volume indicates that the buyers are confident that DOT will sustain the higher prices. A daily candlestick closing above the breached resistance will allow traders to test this level for suitable support.
If the coin sustains above the $8.81 mark, the flipped support may bolster the recovery rally 15% higher to reach the $10.6 mark.
However, as per the technical setup, the bullish reversal pattern will lead the DOT price to its neckline resistance of $11.8, indicating a more than 12% growth opportunity.
While things look bullish for DOT price, a failed attempt to hold above $8.81 may pull the price back to the $7.87 mark.
Technical Analysis
EMAs: A bullish crossover of 20-and-50-day EMA amid the $8.81 breakout gives a strong confirmation for buyers. Moreover, the last pullback bounced back from the 20-day EMA indicates it has flipped to viable support.
Vortex indicator: the expanding gap between the VI+ and VI- slopes accentuates the growing bullish reign.
- Resistance levels- $10.6 and $11.8
- Support levels- $8.81 and $7.87
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