The Polkadot (DOT) price is trading inside a corrective pattern. A breakout from it could trigger a 50% price increase.
The Polkadot price has fallen since reaching an all-time high price of $55.09 in Nov. 2021. The downward movement led to a low of $5.32 in Nov. 2022. The low was slightly below the $5.90 horizontal support area. However, the DOT price bounce afterward and is now trading inside the support area.
A bullish sign is the bullish divergence in the weekly RSI (green line). If the divergence holds, it could initiate an upward movement toward $9.30.
On the other hand, a weekly close below the $5.90 support area could be the catalyst for a decrease toward $4.
Polkadot Price Prediction: Bullish Above $7.10?
It bounced on the support line of the channel on Nov. 9 and began the current increase.
After a retracement, the DOT price has increased over the past 24 hours. The highest price reached was $6.04. If the upward movement continues, the closest resistance is at $6.20, created by the middle of the channel.
The daily RSI (green line) supports this increase, since it has generated a bullish divergence.
The resistance line of the channel is at $7.10. If the DOT price breaks out above it, it could accelerate its rate of increase to the next resistance at $9.50.
Conversely, a breakdown from the channel would be bearish and send the DOT price to $4.
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