Polkadot (DOT) price posted weekly gains of 50% as it approached the $50 mark. Is DOT poised to reach $50 or will it pull back in the short term?
Fundamentals and historical price behavior
Polkadot experienced a significant price surge last week, driven largely by fundamental developments. Market sentiment around the cryptocurrency turned highly optimistic after the development team deployed the Rococo upgrade. This update fixed multiple bugs, introduced new features, and added seven additional networks: Tick, Trick, Track, Kiltprotocol, Plasm_Network, polkaBTC, and AcalaNetwork.
DOT recorded weekly gains of 49.03%. Compared with other cryptocurrencies, DOT outperformed Bitcoin’s 18.18% gain and Ethereum’s 6.96% decline over the same period.
At the time of writing, DOT trades at $38, representing a 127.84% price increase over the past month.
Daily analysis of DOT / USD
Polkadot (DOT) appears to have paused—at least briefly—its uptrend after reaching $42.22 on Saturday, and the price is currently undergoing a healthy correction. Few market participants believe this recent high represents DOT’s peak.
DOT faces a strong resistance zone near its current all-time highs and will need increased trading volume and buying pressure to break through. On the downside, the nearest support lies around the 23.6% Fibonacci retracement level at $33.46.
The DOT daily RSI has been in overbought territory for more than a week. With the indicator now trending lower, the RSI appears set to re-enter a normal trading range; its current value is 76.88.
Hourly analysis of DOT / USD
The 1-hour DOT chart is somewhat less bullish, as the cryptocurrency is currently undergoing a short-term correction. Polkadot is struggling with the 21- and 50-hour EMAs while trading on relatively low volume.
Nevertheless, whether DOT wins or loses this short-term battle, the overall market sentiment remains very positive. Many analysts expect DOT to reach $50 soon, provided buying pressure returns and volume increases to sustain the breakout.