Will Polkadot Price Continue To Rally Following 100% Surge?

Polkadot (DOT) has seen an extraordinary rally, surging over 100% in the past month. The cryptocurrency has broken out of a prolonged downtrend channel, marking a reversal in its price trajectory. Following this breakout, DOT reclaimed the $8 level, a resistance-turned-support zone from previous cycles. Analysts suggest that this level is crucial for the continuation of upward momentum.

Polkadot Price Breaks $8 Resistance: Is a Rally to $10 Next?

As part of a broader crypto rally, the Polkadot price surged 111% in the past 30 days, reclaiming $8 after a 40% daily jump. This upward movement has been fueled by strong bullish momentum and an increase in trading volumes. The $8 mark, which previously acted as a resistance zone, is now being tested as support. 

On the monthly chart, Polkadot price is moving toward a key horizontal resistance level near $10, which also represents a critical psychological barrier. Historically, the $10 zone has acted as both support and resistance during various market cycles. Therefore,  a successful breach could pave the way for a rally toward the $12.60 level.

Source: X

Moreover, top technical indicators reveal a bullish outlook. The Relative Strength Index (RSI) has entered the overbought zone on the daily chart, reflecting increased buying pressure. This suggests that the market is favoring continued upward movement. However, traders remain cautious of a potential correction, as overbought conditions often precede short-term retracements.

Source: TradingView

Additionally, the MACD indicator for Polkadot (DOT) shows a strong bullish crossover, with the MACD line moving significantly above the signal line, indicating heightened bullish momentum. The rising histogram bars further confirm increasing buying pressure, suggesting that the uptrend could continue. 

Will Price Reclaim the $10 Level?

Analysts believe the Polkadot price prediction could reach the $10 mark if the bullish momentum persists. The next key resistance level lies near $9.91, which, if breached, could pave the way for further gains toward $10 and beyond. The Simple Moving Average (SMA) on the daily timeframe continues to support DOT’s upward trend, reinforcing market optimism.

Despite this rally, a bearish reversal could lead to a retest of the $6.57 support level, with stronger downward pressure driving the Polkadot price back to its critical floor of $5. More so, analyst Rekt Capital emphasized the importance of closing the month above $8.61 to sustain the crypto rally.

At press time, Polkadot (DOT) is trading at $8.53, up 35.65% in the past 24 hours. The market cap stands at $13.14 billion, with a 24-hour trading volume of $3.03 billion, reflecting a 271% increase.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.