Polkadot (DOT) price will rise to $6 if it breaks through this resistance level
Date: 2023-07-28 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The price of Polkadot failed to break out of the key diagonal resistance line for the fourth time.
At the moment, DOT is trading near the convergence point of important support and the aforementioned diagonal resistance. Ambiguous signals appeared on the daily timeframe, but short-term indicators indicate a high probability of a bullish scenario.
Polkadot is trying to break out of the downward resistance
Technical analysis of the daily timeframe shows that on February 23, the price of DOT reached a one-year high of $7.90 and then dropped below a descending resistance line. During this time, it made four unsuccessful attempts to break through - the last one occurred quite recently, on July 21 (it is marked with a red icon on the chart).
However, Polkadot is still trading above the horizontal support area of $5.20 – in close proximity to the convergence point with the diagonal resistance. The further direction of the trend will depend on which of these levels the asset overcomes first.
The daily Relative Strength Index (RSI) is at 50, indicating a neutral trend.
DOT Price Prediction: A Break Out of the Triangle Would Lead to a Rise to $6
Technical analysis of the short-term six-hour timeframe gives more positive signals.
DOT has been trading inside the ascending triangle since July 7. This pattern is considered a bullish pattern, which means that a breakout from it is the most likely scenario. If the hypothesis turns out to be correct, in the near future there will be a sharp rebound from the base of the triangle, which will eventually lead to the price going beyond its limits.
A breakout of the short-term pattern and the long-term downward resistance line is likely to provoke a sharp rise in the direction of $6. However, falling below the triangle support line will break the structure — in this case, the price of Polkadot may fall to the nearest support at $4.80.
