Polkadot (DOT) Price Analysis: Sights Set On $8?

Polkadot (DOT) has recently shown a promising recovery, maintaining a price level above $7 over the past few sessions, with the 200-day SMA providing support. 

DOT, which has been on a downward trajectory since March, is showing signs of a recovery, with sentiment analysis indicating there could be a significant price increase in the near future. 

A Steady Recovery For Polkadot (DOT)

Over the past week, Polkadot (DOT) has made a significant recovery, with the price increasing by 8.50%. This recovery is particularly noteworthy as it follows a period of decline since March. The price found strong support at $6.40, and the formation of a double bottom pattern, a bullish reversal pattern, indicated that the price had reached its lowest point and was likely to increase. Since then, DOT has steadily increased, surpassing $7 and the 200-day SMA. 

After forming a double bottom pattern on the 30th of April, DOT made a strong recovery, rising by 7.39% on the 1st of May and settling at $6.88, where the 20-day SMA was acting as resistance. However, DOT registered another significant increase on the 2nd of May, which saw the price cross the 20-day SMA, the 200-day SMA, and the $7 price level to settle at $7.27. DOT saw a volatile session on the 3rd when the price hit a low of $7, but with support building at this level, it was able to recover, eventually settling at $7.25.

Saturday saw DOT register a drop of 1.77%, slipping below the 200-day SMA to $7.12. However, DOT recovered on Sunday, registering an increase of 2.60% to climb back above the 200-day SMA to settle at $7.30. As you can see from the price chart above, DOT, which had strong support at the $6.40 mark, now has the 20-day SMA acting as support at $7, along with the 200-day SMA at $7.20. 

DOT’s Next Milestone? 

So, what is the outlook for DOT? In the current session, DOT is up by 1.04% as buyers push the price towards $7.50. Should the bullish sentiment persist, we could see DOT push toward the $8 price level and test the resistance there. Looking at the indicators, the MACD is showing strong bullish sentiment, indicating strong buying pressure. The Parabolic SAR has also flipped to bullish, while the RSI is currently at 51, giving DOT considerable room before it is anywhere near overbought territory.

DOT looks on course to test the $8 price level as things stand. However, should the sentiment return to bearish, we could see the price drop to $7, and if this level of support is breached, then it will go back to $6.40.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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