Polkadot Retests Key Support Level as Analyst Eyes Repeat Rally – Here’s His DOT Outlook

Polkadot’s DOT token is currently trading around $7.3, showing a healthy uptrend of about 6% over the last 30 days. The 200-day moving average sits around $5.3, which indicates the long-term trend and support level – the price bouncing off and holding above this level signals ongoing momentum.

The relative strength index (RSI), a technical indicator measuring recent price performance, reads 42 on the 6-month chart. An RSI below 50 typically indicates negative momentum, while a reading above 50 signals positive momentum. So while 42 shows DOT has slowed down somewhat in recent months, it remains well within neutral territory.

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Zooming out to the monthly DOT/USD chart, we can see the coin trying to reclaim the $6-7 region as support after it previously acted as resistance. As prominent crypto analyst Rekt Capital explains, this green zone blocked upside moves in early 2023 and prior to 2021. Now it must flip to support for bulls to regain control.

In his latest altcoin newsletter, Rekt Capital notes how DOT followed the projected path (blue line) very closely – rallying 32% to hit resistance (black line) before pulling back to retest support around $6.6, aligned with the key 2.618 Fibonacci level.

While this move already occurred, Rekt Capital suggests the repeat rally and breakout past resistance is still possible given DOT’s improving technical posture on the higher timeframe monthly chart.

Specifically, he notes the monthly chart shows potential for DOT to reclaim the $6-7 zone as support after it blocked further upside on two occasions before. If it can turn previous resistance into new support, this improves the outlook for DOT to repeat the 32% bounce off support and tackle resistance again.

But for now, the retest remains underway as buyers try to cement the $6-6.50 area as the new floor.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!