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Coming back stronger to end 2023 on a similar bullish note on which the year started, the DOT price is climbing the ladder fast. The Polkadot token price displays a comeback fueled by a channel breakout to cease the lower high formations.
Signaling a trend reversal per Dow Theory, Polkadot’s price exceeds the 200D EMA and trades above the psychological mark of $5. Further, as the market recovery is gaining traction, the Polkadot price prediction signals a further bullish recovery.
Source – Tradingview
Making a comeback from the 52W low at the $3.56 mark, the DOT price gives a return of 53% in the last 44 days. However, Polkadot shows a minimal YTD growth of 27.43% due to a prominent pullback in summer.
Nevertheless, the strong signals of a trend reversal in the daily chart improve the sentiment around Polkadot and increase the possibility of an uptrend. For example, the channel breakout rally influences a positive trend in the 50D and 200D EMA, leading to a golden crossover.
Further, the recent 53% jump in DOT price leads to a short sideways stroll, reflecting a breather phase before continuing the rally. Currently, the DOT price trades at $5.45 following the overight jump of 6.21%.
Technical Indicators:
RSI indicator: The daily RSI line rises with the ongoing recovery to surpass the 14-day SMA and the halfway line. With the momentum indicator approaching the overbought boundary, the bullish scale remains stronger.
Will The DOT Price Reach $8 This Year?
With the altcoins ready to skyrocket and end 2023 at a stellar level, the DOT price exits the bearish road and takes the bullish highway. With the ongoing breakout rally and bullish preparations to prolong the uptrend, Polkadot’s price may soon reach $8 if it manages to surpass the $7.02 level.
For cautious traders, the breakout of the $6.10 resistance level will signal an entry opportunity.
If the DOT price overcomes the $5.50 supply zone, the altcoin price may shoot higher to $6. On the opposite end, a downtrend will challenge the 200D EMA or the $5 mark.
#PriceAnalysis [Source: Coinpedia]