After trading sideways for about a week, the Polkadot price breaks out of its resistance level, indicating a bullish influence in the crypto industry. On the other hand, the DOT token has recorded a loss of over 19% this month, highlighting a mixed sentiment in the market.
The Polkadot price traded in a closed range between $8.141 and $8.707 for a brief period, following which the bulls lost power and the DOT price experienced a correction of approximately 12%.
The price experienced a minor bounce back at the support level, but the rally was short-lived as the bears overpowered the bulls, resulting in a correction of over 16% in valuation. Following this, the price traded between $6.791 and $7.485 for a period.
As the market gained momentum, the bulls recorded a jump of 28%, after which it faced rejection at $8.707. After this, the price constantly traded under a bearish influence and broke down multiple support levels.
The Polkadot price tested its crucial support level of $6.098, but the bulls held the price strong above the level, resulting in it trading in a closed space between $6.098 and $6.791.
Recently, the price successfully broke out of its important resistance level, indicating a rise in the bull power within the crypto space.
Will DOT Price Increase?
The RSI displays a sharp fall in the chart, suggesting increased selling pressure in the crypto industry for the coin. Further, the averages show a high possibility of a bearish convergence, highlighting a bearish influence in the market.
If the bulls hold the price above the support level of $6.791, the DOT token will test its resistance level of $7.485 soon. Maintaining the price at that level will set the stage for Polkadot to attempt to test its upper resistance level of $8.141 in the coming time.
Negatively, if the bears regain power, the DOT token will test its support level of $6.791. Moreover, if the bears continue to dominate the market, it will plunge and prepare to test its lower support level of $6.098 this week.