Polkadot moved a step closer to reaching its all-time high as DOT price climbed above $25
Fundamentals and recent price performance
Polkadot has been in a pronounced uptrend since December 28, a rally that has continued to the present. Over the past days the cryptocurrency moved from lows around $5 to highs above $25. This advance has been driven by solid DOT fundamentals that supported strong buying interest.
DOT recorded a weekly gain of 17.64%. For comparison, BTC gained 17.63% over the same period while ETH posted a 3.89% increase.
At the time of writing DOT trades near $25, representing a 57.57% increase versus its value a month ago. With a market capitalization of $22.87 billion, Polkadot currently ranks as the sixth largest cryptocurrency by market cap.
DOT/USD daily chart analysis
Polkadot appeared to stall after failing to push past the area near $20.85, which suggested the rally might have reached a temporary top. However, renewed buying pressure driven by its fundamentals pushed the price up to and beyond $25. While the near-term directional path remains uncertain, the strong fundamentals suggest DOT still has the potential to revisit and eventually exceed its all-time high of $50.70.
At $25 DOT faces a key resistance zone, while the first significant support level sits at $20.85.
DOT/USD daily price chart. Source: TradingView
The DOT RSI currently reads 74.11 on the daily timeframe, placing it in overbought territory.
DOT/USD 1-hour chart analysis
The hourly timeframe shows the 21-hour and 50-hour EMAs lack decisive significance at the moment. Traders should not rely on these moving averages as strong support or resistance levels in the short term.
DOT/USD 1-hour price chart. Source: TradingView
Trading volume for DOT remains extremely elevated, indicating heavy activity as the market tests and attempts to push beyond the $25 level.