Polkadot (DOT) experienced an exceptional surge in December, gaining 47% in value. Even in the last two days, DOT’s price increased by over 20%, indicating a growing usage and revenue in the blockchain sector. This rally has led DOT to reach its highest level in 2023, with the price surpassing $7.9.
Despite a slight decrease at the time of writing, DOT managed to close the 24-hour trading period above $7.9. Analysts predict that DOT may fluctuate between $7.2 and $7.9 in the coming days and retest the $7.2 level. A successful retest could pave the way for a continued rally and potentially new price peaks.
The price range between $7.2 and $7.9 represents a sell order block on the 24-hour chart. However, the three-day chart emphasizes DOT’s strong upward trajectory, contrasting with higher timeframe charts. Additionally, the chart highlights a key resistance level at $9.65, which was the peak in August 2022, though predicting the start of such a rally is challenging.
The OBV metric has been rapidly increasing, and the RSI has risen to 75, indicating strong bullish momentum. Prices historically tend to move towards liquidity, and DOT’s current position, even after a drop from the $8.5 level in the last 12 hours, remains in a positive zone.
Liquidity pools exist both above and below the current price, suggesting that bulls could have the upper hand. The chart points to significant levels at $6.93, where key liquidation levels are present, with other notable points at $7.81, $7.5, and $7.3.
Considering the positive structure, it’s plausible that bulls could catch bears off-guard, leading to a more likely bullish outcome. The market’s future movements will be closely watched, with these price levels playing a critical role in DOT’s trajectory.