In the past week, Polkadot (DOT) has experienced significant fluctuations. After achieving an impressive increase of 125.75% in November, the price of DOT dropped to $7.16 at the beginning of this week, indicating profit-taking pressure from investors.

However, current technical indicators are sending positive signals. The Relative Strength Index (RSI) stands at 37.20, close to the oversold threshold, while the Stochastic Oscillator (STOCH) is at 34, suggesting potential short-term recovery.

Notably, the price of DOT has entered a crucial Fibonacci support zone, often considered a pivot point for subsequent bullish moves. Data from Coinglass shows that $1 million was withdrawn on Friday morning, marking five consecutive days of capital outflows since December 16, reflecting investors' confidence in DOT's recovery potential.

Despite the formation of a head and shoulders pattern on the technical chart, which typically signals a downtrend, the support level at $6 remains intact, indicating market resilience and buyer confidence. Analysts suggest that if DOT can break through the resistance level of $9.35, the cryptocurrency could witness a strong rally, especially with the Polkadot 2.0 upgrade expected to launch in Q1 2025.

Overall, although DOT has undergone some corrections this week, the technical and fundamental factors indicate growth potential in the near future, particularly as important upgrades are implemented and investor interest continues to rise.