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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.