Polkadot (DOT) has successfully flipped the previous resistance level into support. The price is expected to continue to rise.
Weekly outlook
DOT price broke out of the descending wedge pattern in January with a large bullish candle, helping the price approach the horizontal resistance level at $7.4.
Despite being rejected, the price has successfully flipped the wedgeâs resistance line into support during the week of March 6 to 13. This suggests that DOT may have formed a bottom.
Additionally, DOT has also flipped the 20-week MA as support. Therefore, the price is expected to rise to the $7.4 level, marking a 15% increase from the current level.
Breaking out of this level will help DOT form a bullish structure, and the price may quickly rise to the next resistance level at $9.5.
Regaining the important price zone
After being rejected by the $7.4 level, the DOT price fell below the important support level at $5.9. However, this turned out to be a false breakdown as the price quickly regained this level and confirmed it as support on March 15 (green arrow). Such a false breakdown often leads to a strong upward move.
The RSI indicator has also recovered strongly from oversold levels and is above 50, supporting continued price growth.
Therefore, DOT is likely to continue to rise to the recent high of $7.4 in the near future.
Conclusion
Overall, the most likely prospect is that DOT will continue to rise in the future, with the nearest target at $7.4.
Breaking below the $5.9 level will invalidate this scenario and indicate that the price is expected to drop to the yearly low at $4.2.
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This article was republished from azcoinnews.com
