Polkadot (DOT) is making waves as the cryptocurrency market shows signs of recovery. With a market cap of $6.68 billion, DOT has gained 4.12% in the past 24 hours, sparking speculation about a potential rally beyond the $5 psychological barrier. Could this October rally mark the beginning of a trend reversal for Polkadot?
Polkadot Inches Closer to Trend Reversal
Polkadot’s recent price action hints at a bullish shift after enduring a 62.62% decline from its 52-week high of $11.89. Over the last seven days, DOT bounced back from a low of $3.949, surpassing its 20-day Exponential Moving Average (EMA) and now testing the 50-day EMA—a critical resistance point.
Adding to the optimism, a bullish crossover between the 20-day and 50-day EMAs signals the potential for upward momentum. Yesterday’s 5% jump was marked by a bullish engulfing candle, followed by an additional 1.58% intraday growth today. The daily Relative Strength Index (RSI) shows bullish divergence, suggesting growing market confidence and increasing chances of a breakout.
A successful breach above the 50-day EMA could pave the way for a sustained rally, with eyes set on higher Fibonacci levels.
Analyst Predicts Bull Run to $20
Crypto analyst Martinez Ali has expressed bullish expectations for Polkadot, drawing parallels between DOT’s current setup and Fantom’s past price movements. In a recent post on X (formerly Twitter), Ali predicted that Polkadot could reach $9.7 in the coming months, followed by a pullback to $6.7, before embarking on a larger rally toward $20.
Key Targets and Support Levels
Using Fibonacci retracement levels, DOT’s recovery rally faces its next challenge at the 200-day EMA around $5.49. If successful, Polkadot could target the 23.6% Fibonacci level at $5.799 and potentially push toward the 38.2% level at $6.9 and $7.789.
On the downside, $4.27 (20-day EMA) and the $4 psychological level will serve as crucial support zones if the market turns bearish.
Also Read: Polkadot (DOT) Eyes 25% Rally As Price Consolidates – Will It Break Out From $4.554?
Will Polkadot Surpass $5 This October?
As bullish momentum builds, Polkadot appears poised for a breakout. A decisive move above the 50-day EMA could unlock further gains, potentially setting DOT on a path toward the $9.7 target. While key resistance levels lie ahead, market sentiment is tilting bullish, increasing the chances of a trend reversal this October.
All eyes are now on whether Polkadot can sustain its momentum and trigger a bull run toward new highs. Keep a close watch—October could be a game-changer for DOT holders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
