The price of Polkadot (DOT) is displaying recovery after a period of subdued activity. Currently, DOT is trading around $4.516, with attention focused on the resistance level at $5.
Overview of DOT Price Recovery
The recovery of Polkadot's price began from the $3.50 support level earlier this month, followed by a nearly vertical upward trend on the daily chart. The last 10 candles have been mostly green, indicating a strong bullish trend.
Indicators and Resistance Levels
The Relative Strength Index (RSI) is currently at 76.90, exceeding the standard overbought threshold of 70. This may raise caution for some traders, but in strong trends, such RSI levels often indicate bullish continuation. Key Fibonacci levels show that initial resistance lies in the $4.89–$5.00 range.
Short-Term Outlook for DOT
The short-term forecast for the next week includes three scenarios: a bullish scenario where the price could reach $5.06 and possibly $5.35; a neutral scenario suggesting consolidation between $4.30 and $4.60; and a bearish scenario with a breakdown below $4.00.
The current price action of Polkadot indicates strong signs of a bullish move, and traders should monitor the $5 level, which may be crucial for further growth.
