Polkadot: Can $DOT Extend Bullish Rebound to $8?

Polkadot (DOT) continued its bullish resurgence from the $6 price zone by flipping the $6.6 resistance level to support over the past 24 hours. This brought the total gains so far for buyers from the $5.8 support level to 15%.

However, a look at DOT’s price action revealed room for more bullish gains with buyers looking to claim another resistance level ($7.7) and take the bullish rebound to the $8 price zone.

Buyers look to reverse bearish momentum

The Relative Strength Index (RSI) highlighted the shift in momentum from bearish to bullish with buyers ramping up the buying pressure to move above the neutral 50 mark. This sustained the upward trajectory of the RSI along with the price action.

Similarly, DOT registered increased capital inflows with the Chaikin Money Flow (CMF) posting a bullish reading of +0.07. It is important to note that the CMF has remained positive over the past five days, further adding to the bullish narrative.

Based on DOT’s price action and on-chart indicators, traders can expect another strong push towards $8. This offers a 15% reward opportunity from the current market price.

With the general crypto market gradually regaining its bullish momentum, DOT could leverage the bullish sentiment to push on for increased gains.

On the flip side, an ability of buyers to break above $7.5 could keep DOT stuck between the $7 and $8 price range. This could play out if the price is rejected at the $7.5 price level.

Despite this, bulls are poised to sustain the momentum and continue to push buyers to register bullish gain

Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.