Polkadot $DOT is currently trading at $5.88, with a +0.0226% change from its previous close.
On the weekly chart, a possible “bottoming curve” or “rounding bottom” pattern is forming, which could indicate a trend reversal from bearish to bullish. This pattern is characterized by a gradual slowdown in the downtrend, followed by a period of stabilization and, subsequently, a gradual recovery in prices.
In addition, the 7-, 14-, and 21-period Exponential Moving Averages (EMAs) are approaching the 50-period EMA, suggesting a potential shift to an uptrend. Historically, similar crossovers have resulted in significant gains for DOT.
Technical analysis indicates that the resistance level around $8.259 (corresponding to the 0.618 Fibonacci level) is crucial. A break above this level, accompanied by significant volume, could signal a continuation of the uptrend, with potential targets at $9.019 and $9.987.
However, it is essential to monitor indicators such as the Relative Strength Index (RSI) and Stochastics, which may indicate overbought conditions, suggesting possible corrections before new highs. Caution and the use of risk management strategies, such as setting appropriate stop-loss levels, are recommended.
Remember that technical analysis is based on historical data and does not guarantee future results.
