• Polkadot (DOT) has surged in value, breaching the $5 resistance mark.
• The asset’s technical outlook is bullish in the shorter time frame, with accumulation on the chart increasing.
• A fall in price is possible, presenting traders with shorting opportunities.
Polkadot (DOT) has been on a remarkable run in the past few trading sessions, having breached the $5 resistance mark. The asset’s price has risen by 3.8% in the last 24 hours, propelled by the recent surge in the price of Bitcoin. As Bitcoin crossed the $18,000 mark, other altcoins began to break past their immediate resistance marks. The technical outlook for DOT is bullish in the shorter time frame, with accumulation on the chart increasing. This has made Polkadot one of the top performing altcoins in the market.
The daily chart for DOT also points towards an incoming fall in price, which could offer traders with shorting opportunities. Currently, DOT is trading at an 89% discount from its all-time high back in 2021. On the one-day chart, Polkadot was priced at $5.89 at the time of writing. The asset had formed a cup and handle pattern, which suggests that the bullish momentum may continue. Overhead resistance for the coin stands at $6, and if this level is breached, the coin could move up to $6.20.
With the increase in demand for Polkadot, the asset needs to remain above the $5.40 support line and breach the $6.20 resistance level in order to maintain a bullish stance in the longer time frame. If this happens, Polkadot could become one of the most sought after crypto assets in the market. Investors looking to capitalize on the potential of the asset should keep an eye on the development of the market and the asset’s technical indicators.