With a potential trend reversal rally, will Polkdat (DOT) surpass key levels this month for a bull run to $20?
As the cryptocurrency market recovers, Polkadot is coming back into action. With a market cap of $6.68 billion, the DOT price has increased by 4.12% in the past 24 hours.
As the bullish momentum resurges in Polkadot, the possibility of a bull run beyond the $5 psychological mark increases. Will the uptrend create a trend-reversal rally this October rally? Let’s find out.
Polkadot’s Reversal Nears 50-day EMA
In the daily chart, Polkadot price action reveals a massive correction over the past six months, accounting for a downfall of 62.62% from the 52-week high of $11.893 to the current price of $4.446. However, the short-term recovery rally teases the possibility of a trend reversal.
Over the last seven days, the bullish reversal from the seven-day low at $3.949 has surpassed the 20-day EMA and is challenging the 50-day EMA. Furthermore, the growing bullish influence sees a bullish crossover between the 20-day and 50-day EMA.
With a bullish engulfing candle that recorded a 5% jump yesterday, the uptrend continues with an intraday growth of 1.58%. The sideways trend near the $4 psychological mark reveals a bullish divergence in the daily RSI line.
As the bullish divergence grows, the possibility of a bounce back in Polkadot increases. Hence, a price jump above the 50-day EMA will likely unleash a surge of bullish momentum.
Analyst Predicts Polkadot Bull Run to $20
Crypto analyst Martinez Ali recently shared an optimistic X post for Polkadot, supporting the possibility of a bullish trend. Martinez highlights a bullish reversal possibility by finding a similarity between Fantom’s price action and Polkadot in the weekly chart.
In predicting the Polkadot future price, Ali highlights that if the bullish pattern holds, the DOT price could reach $9.7, followed by a pullback to $6.7, which would give a breakout rally to the $20 mark.
Near-term Polkadot Price Targets
Based on the Fibonacci levels, the uptrend reversal rally will have to surpass the 200-day EMA at $5.49 to challenge the 23.60% Fibonacci level at $5.799. With the bullish reversal, Polkadot’s short-term upside target is 38.20% Fibonacci levels at $6.9 and $7.789.
On the flip side, the 20-day EMA at $4.271 and the $4 mark are crucial support levels for the altcoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
