- Polkadot (DOT) surged over 10% in 24 hours, trading above $10.70.
- The recent rally highlights a near 90% gain since mid-November, driven by bullish sentiment and increased volume.
- Analysts eye $12 as the next critical resistance, with $9.50 acting as key support.
Polkadot (DOT) has experienced an upward surge, reaching $10.78 after gaining more than 10% in the last 24 hours. The token’s sharp rise marks a nearly 90% recovery since mid-November, supported by robust buying pressure and increased trading activity, as reflected by the 34 million DOT traded within the day.
According to CoinMarketCap, the price momentum aligns with a broader rally seen across the cryptocurrency market, pushing Polkadot closer to a key resistance level at $12. Historically, this level has proven challenging for the token, making it a critical zone for traders to monitor.
The volume-backed breakout from the $9.50 support indicates sustained interest among buyers. However, any failure to maintain the current momentum could see Polkadot retrace to this support zone, consolidating before another potential move higher.
Technical Insights and Future Outlook
Technical analysis points to bullish strength, with the 50-day moving average providing solid support near $8.50. The token’s ability to maintain its position above this moving average suggests that the rally could continue, provided broader market conditions remain favorable.
Polkadot is approaching overbought territory, as indicated by its relative strength index (RSI). This could prompt short-term profit-taking, potentially leading to a minor consolidation phase before testing the next resistance level.
If DOT can break above $12 with significant volume, it could pave the way for a further rally, with analysts setting their sights on $14 as a mid-term target. Conversely, a rejection at $12 may result in a pullback to the $9.50 or $8.50 support levels.
Conclusion
Polkadot’s ongoing rally highlights its growing momentum as it approaches critical resistance. With market sentiment favoring risk-on assets, DOT appears well-positioned to sustain its gains. However, traders are advised to monitor key levels closely, as overbought conditions could lead to short-term corrections before the next upward move.
