Polkadot (DOT) Teeters ‘On the Cusp of a Breakout’: Can It Surpass Resistance at this Key Level?
The cryptocurrency Polkadot (DOT) is fast approaching a crucial technical level that analysts have identified as an inflection point that could fuel increased volatility. DOT currently trades just below resistance at $8.55 – $8.70, a zone that two prominent crypto analysts, CryptoVIPsignal and Ygcrypto, suggest marks the upper boundary of the current trading range.
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Breakout Could Signal Further Upside
According to CryptoVIPsignal, “DOT is currently moving as expected and is undergoing tests in the resistance area. The next crucial step is to observe whether it can surpass this resistance zone.” The analyst notes that a break above resistance could set the stage for “significant upward movement” but also warns long holders to “consider booking some profits or implementing tight stop-loss strategies.”
Ygcrypto echoes a similar perspective, saying DOT stands “on the cusp of a BREAKOUT” as it pushes against resistance ahead of a potential “moon mission.” However, the analyst similarly advises longs to tighten stop-losses to protect gains in case of failure.
DOT Remains in Uptrend But Faces Inflection Point
Price action over the past day has seen DOT rally over 10% from around $7.30 to trade just below the stated resistance zone, marked by horizontal support stretching up towards $8.70.
According to an analysis by market intelligence platform altFINS, DOT remains in a clear uptrend across short, medium, and long timeframes.
If DOT manages to decisively break resistance at $8.00, altFINS sees continuation towards $10 (+25% upside) as likely. However, failure to push through could also result in a pullback towards the $6 support zone, which would reset conditions for another rally attempt back towards $8 (+30% upside).
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Show more +With DOT appearing poised for a volatility breakout at a critical technical zone, traders have taken notice. The coming sessions are likely to see increasing activity around current levels as the market awaits the next definitive move. Both bulls and bears have cause for anticipation and the possibility of strong swings remains high. Risk management strategies such as stop-losses or taking partial profits are key considerations given the precarious “danger zone” DOT finds itself in.
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