- Polkadot price surges over 2.0%, reaching a 10-day high after crossing key EMA convergence.
- DOT’s rebound from two-month support aligns with a Stochastic recovery from oversold territory to bolster bullish bias.
- Daily closing beyond $4.25 could direct Polkadot buyers toward the all-important $4.68 hurdle.
- DOT’s recovery gains momentum, but $4.68 breakout is necessary to reverse its yearly loss.
Polkadot (DOT) rallies 2.0% to hit a 10-day high near $4.26, before retreating to $4.23 by press time of early Thursday. In doing so, the altcoin pokes the 200-day Exponential Moving Average (EMA) while cheering breakout of the 50-day and 100-day EMA confluence.
Apart from the EMA breakout, DOT’s continued recovery from an ascending support line since early August, along with the Stochastic indicator’s rebound from oversold levels, strengthens the bullish bias.
Additionally, firmer trading volume and market capitalization (market cap) also back the DOT’s latest run-up, keeping buyers optimistic for further gains. That said, Polkadot’s daily trading volume jumps to a week’s high of $342.56 million, while the market cap hits an 11-day top of $6.84 billion by press time, according to Santiment.
On a different page, the U.S. government shutdown weighs on the U.S. Dollar and adds strength to Polkadot’s run-up.
Also read: U.S. Government Shuts Down: Political Gridlock Halts Federal Operations
With this, the altcoin is on track to reverse its second consecutive yearly loss of around 36%, but multiple upside hurdles may challenge the bulls along the way.
Polkadot Price: Daily Chart Suggests Further Upside
Polkadot’s clear upside break of the 50-day and 100-day EMA confluence surrounding $4.04 joins the Stochastic recovery from an oversold territory to underpin the bullish bias that could cross the 200-day EMA hurdle of $4.25.
In a case where the DOT surpasses the $4.25 hurdle, a broad resistance zone from late May, between $4.62 and $4.68, will be the last defense of bears before handing control to the buyers.
Beyond that, $5.00 threshold and May’s peak of $5.39 could test the bulls before directing them to the early 2025 highs surrounding $6.50, $7.60, and the yearly high of $8.02.
On the flip side, the mid-September swing low of near $4.11 acts as an immediate support for the DOT before the key EMA convergence, near $4.04.
That said, Polkadot’s daily closing beneath the key EMA convergence, near $4.04, could drag price to an ascending support line from early August, close to $3.82.
Should bears manage to break the same, multiple lows marked since late April between $3.69 and $3.66, as well as a six-month horizontal support zone near $3.25-$3.29, will be the last defense of buyers before eyeing the fresh yearly low, currently near $3.02.
Polkadot Price: Four-Hour Chart Tests Buyers
Polkadot’s upside break of the 200-bar EMA and a fortnight-old horizontal resistance, now immediate support near $4.11, underpins the bullish bias, even as the overbought Stochastic conditions challenge intraday buyers.
This highlights the mid-August swing high near $4.37, the $4.63 resistance, and the $5.00 round figure, as well as the daily chart’s resistances, for the DOT bulls.
On the flip side, a downside break of the $4.11 resistance-turned-support could direct sellers to the 200-bar EMA of $4.04 and then to the $4.00 round figure.
Below that, an ascending support line from August, close to $3.82, and the deeper levels discussed on the daily chart.
Conclusion
Polkadot benefits from a key EMA breakout, positive Stochastic signals, and a softer U.S. Dollar, strengthening the bullish outlook. However, a break above $4.68 is needed to reverse its yearly loss.
Also read: Crypto Weekly Price Prediction: BTC, ETH & XRP all Tumble as U.S. Data Fuels Dollar, NFP Eyed
