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Polkadot (DOT) rose by over 15% in the past week and by 3% in the past 24 hours. Yet, it has failed to latch onto the big bullish sentiment in the market. With Bitcoin (BTC) comfortably sitting above $60k, DOT has struggled to break above $9.
This bearish price zone between $9-$10 has stood in the way of bulls, all the way back to August 2022. A recent attempt to break beyond this price zone in December 2023 was met with a steep price dip.
However, DOT’s current price action and on-chart indicators could see the altcoin break this resistance and unleash a wave of massive gains for buyers.
Emmanuel Musa
Polkadot - The NextGen Interoperability Blockchain
Polkadot is a next-generation blockchain protocol that aims to enable interoperability between different blockchains. At its core, Polkadot is designed to facilitate the seamless transfer of data and assets between different blockchains, allowing them to operate in a decentralized and interconnected ecosystem.
One of the key innovations of Polkadot is its relay chain, which serves as the main network connecting various specialized blockchains, known as parachains. These parachains can be customized for specific use cases, such as finance, gaming, or identity verification, while still benefiting from the security and shared infrastructure provided by the Polkadot network.
DOT, Polkadot’s native token is used for staking, facilitating network governance, and bonding tokens to connect parachains.
Can DOT Break the $9.5 Resistance For A Parabolic Rally?
DOT’s growing bullish strength was signified by the Relative Strength Index (RSI) crossing the 70 mark (overbought). This highlighted the massive buying pressure on the daily timeframe, re-echoing the long-term outlook for DOT buyers.
Similarly, capital inflows into DOT ramped up with the Chaikin Money Flow (CMF) registering a reading of +0.38, its highest reading so far in 2024.
Combined, this strengthened the long-term bullish narrative for DOT. Traders and investors looking to leverage this bullish ride can adopt a short and long strategy.
The short term strategy would be to open a long position at the current market price with profit levels at $10 for 16% gains. If DOT successfully flips the $9.5 resistance level to support, the long-term play would be to open a buy position above $10 with a target price of $20.
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.
