Here’s Why Polkadot (DOT) Might Rally Toward $10: Analysts

TL;DR

• Polkadot (DOT) has risen 10% over the past two weeks, currently trading around $7.50, with expectations for further growth.
• Key metrics suggest moderate momentum, indicating potential for continued price increases.

DOT’s Next Potential Move

Polkadot’s native cryptocurrency has experienced an uptick recently, registering a 10% price increase on a two-week scale. Currently, it hovers around the $7.50 mark (per CoinGecko’s data), with numerous analysts envisioning a further pump in the near future.

One example is the X user Crypto Yapper, who claimed that DOT’s price has broken out of a specific consolidation pattern and is “now seeing a beautiful retest.” The entrepreneur suggested that the asset’s previous resistance has “turned into support,” meaning it can now aim for higher targets.

“I expect Polkadot to be trading around the $10 soon,” the analyst forecasted.

The X user Block Diversity chipped in, too, predicting a price rally to almost $14 as long as DOT trades above the major resistance level of $6.90. 

Other analysts recently giving their two cents on the matter include Crypto Thanos and Crypto Tony. The former assumed that the $6-$7.50 range was “for accumulating only,” setting $10 as the next goal. 

Crypto Tony touched upon the topic last week when DOT’s value stood at less than $7. Back then, the analyst said they were looking for “a safe entry” once the asset exceeded the $7.40 resistance mark. Recall that this figure was surpassed several days ago, and it will be interesting to see whether the trader will hop on the DOT bandwagon as promised. 

Observing Some Important Metrics

Speaking of DOT price predictions, it is worth observing essential indicators. An evident example is the Relative Strength Index (RSI), which provides insights into the momentum and potential reversal points of price movements. The metric varies from 0 to 100, and a ratio above 70 suggests that the cryptocurrency is overbought and could be due for a correction. Data shows that the DOT RSI currently stands at 54.

We will also touch upon the stochastic oscillator, a momentum indicator that compares a particular closing price of a digital asset to a range of its prices over a certain period of time. 

Similar to the RSI, it stretches from 0 to 100, with any ratio above 80 signaling a forthcoming correction. As of now, the metric points at 74 (according to CryptoQuant).