• Polkadot price has broken past the $5 resistance mark in the past trading sessions, with a 3.8% appreciation over the past 24 hours.
• The price of Bitcoin has been surging, which has caused other altcoins to also move upwards on their respective charts.
• Technical outlook for DOT suggests that it is in a bullish stance, but could be subject to a price correction in the near future.
The Polkadot (DOT) price has seen a surge in the past trading sessions, breaking past the $5 resistance mark. The appreciation of the asset is largely attributed to the surge in the price of Bitcoin, which has caused the altcoin market to rally across the board.
Over the last 24 hours, the Polkadot price has appreciated by 3.8%, which is a good indication of the bullish sentiment that is currently in the market. This is further reflected in the technical outlook of DOT, which points to a bullish stance for the asset. The daily chart of DOT shows that the asset has formed a cup and handle pattern, which means that the bullish momentum can continue and push the price of the coin further.
However, despite the bullish sentiment, the asset could be subject to a price correction in the near future. This is evidenced by the demand for the asset, which has seen an increase on its chart, but is still overbought. Therefore, the price of DOT will have to remain above the $5.40 support line and breach the $6.20 resistance level if it is to maintain its bullish stance.
At the time of writing, Polkadot was exchanging hands at $5.89, and its price has to topple the $6 overhead resistance if it is to make further gains. As of now, the asset is trading at an 89% discount from its all-time high secured in 2021, which means that there could be good opportunities for traders to take advantage of the current market conditions.
Overall, the current market conditions are very favorable for Polkadot, but traders are advised to be cautious and keep an eye on the asset’s price movements as it could be subject to a price correction in the near future.