Bullish sentiment has finally returned to Polkadot (DOT), with the cryptocurrency registering an unprecedented surge to go above $5, with bulls now eyeing $6.
DOT is up almost 13% over the past 24 hours and a staggering 51% over the past seven days as the crypto market surges following the US elections.
Can Polkadot (DOT) Reach $6?
As we can see in the price chart, Polkadot (DOT) is in the middle of a bull run, breaking above key resistance levels and moving averages. The DOT price began picking up on the eve of the elections, rising by almost 3% to settle at 3.86 after recovering from a low of $3.65. Bullish sentiment registered a substantial increase on election day, and DOT rose by 6.48% to reclaim $4 and settle at $4.11. DOT pushed above the 20-day SMA on Thursday after rising by 1.46% and went above the 50-day SMA on Friday after an increase of 3.62% pushed the price to $4.32.
Source: TradingView
Bullish sentiment intensified over the weekend as DOT rose over 7% on Saturday to go above the resistance at $4.50 and settle at $4.63. With DOT above a key resistance level, it had a clear path to $5. As a result, DOT rallied over 13% on Sunday, reaching an intraday high of $5.48 before settling at $5.24. Sellers attempted to push DOT back below $5 on Monday as it fell to an intraday low of $4.59. However, with sellers exhausted at lower levels, DOT recovered, rising almost 9% to push above the 200-day SMA and settle at $5.71. The current session saw selling pressure intensify as sellers looked to drive DOT below the 200-day SMA.
As a result, DOT dropped to a low of $5.41 before recovering to its current level of $5.72, posting a marginal increase. With bulls firmly in control, a move to $6 cannot be ruled out. However, sellers have attempted to lower the price over the past couple of sessions. If DOT slips below the 200-day SMA, we could see a shift in sentiment. However, if buyers retain control, we could see DOT test $6 in what marks one of the quickest and most significant reversals in crypto.
Why Is Polkadot (DOT) Surging?
Polkadot (DOT)’s rally can be attributed to Bitcoin (BTC) driving a powerful rally across the crypto market after Donald Trump’s victory in the US elections. Adding fuel to an already burning fire is the Polkadot Sub0 conference, which highlighted crucial technological aspects of Polkadot and its ecosystem. Polkadot has implemented key updates and improvements that have convinced analysts a parabolic rally is imminent. Despite DOT’s current rally, analysts still find the altcoin undervalued and have predicted the price to reach $10 or higher.
However, with the RSI in the overbought zone, we could see a drop in the short term before DOT resumes its rally.
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.
