Key Insights:
- Polkadot’s TD Sequential buy signal suggests a potential trend reversal, indicating a bullish outlook in the near future.
- Polkadot is consolidating near key support levels, setting the stage for a breakout above $3.80, which could lead to higher prices.
- Analyst predictions highlight a strong ecosystem and community, making Polkadot poised for a potential upward move to $10.
Polkadot ($DOT) price is attracting attention from traders as technical indicators signals suggest a potential price rebound. As the token consolidates near key support levels, chart patterns and trading volume reflect growing interest. Market analysts have pointed to bullish signals on short-term timeframes, while longer-term analysis suggests a possible breakout that could lead toward the $10 mark.
TD Sequential Shows Buy Setup on 4-Hour Chart
According to market analyst Ali, Polkadot is flashing a buy signal based on the TD Sequential indicator on the 4-hour chart. This signal occurs when the indicator prints a “9” candle, which traditionally marks the end of a bearish phase and the start of a possible upward trend. The presence of this signal suggests that sellers may be losing strength, opening the door for a short-term rebound.
The TD Sequential is commonly used to identify trend reversals. When this indicator shows a buy setup during a downtrend, traders often expect a near-term recovery. The recent signal on Polkadot’s chart aligns with weakening bearish momentum, which could lead to rising price action if demand increases. The token is also showing early signs of buying pressure, supported by improving candlestick patterns.
Consolidation Near Support Adds Technical Strength
Over time for the past few months, Polkadot’s price has been consolidating between $3 and $6. A range bound movement has formed a base of support at the $3 range where buyers have successfully defended the price. It is also supported by the fact that the lower part of this trading range has not been broken.
Based on past volatility, the price is leveling off within scope of the current trading range. Polkadot may see the possibility of climbing past the $3.80 resistance zone and staying there to help build up the momentum in testing the upper part of the consolidation range. If there is a confirmed breakout above $6 it could mean the start of a move in a bullish trend and from past price action and volume patterns, the analysts are looking at a price target of $10.
Analysts Point to Ecosystem Growth and Community Strength
According to market analyst @evgen_by, Polkadot is one of the most continuously evolving ecosystems in the blockchain space. Although the network is constantly developing new updates, it remains active with developers and community engagement. Polkadot’s strength in its team and rising adoption are mentioned by the analyst to be in favor of future price rises.
As Polkadot continues to add functionality through parachains and developer tools, its network value proposition remains strong. Long-term holders are watching for technical confirmation of a breakout that aligns with continued development and market interest. The ecosystem’s expansion may support a sustainable price increase once current resistance levels are cleared.
Polkadot Price Technical Indicators Support Bullish Case
The price of Polkadot is currently near the lower band of the Bollinger Bands, indicating it may be oversold or approaching a support level. It is also close to the middle band at $3.801, which could act as a key area for a potential bounce.
Currently, the RSI for this asset lies around 38.75, which indicates that this asset is oversold. If demand goes up and the RSI level surges above the midline at 50, the price will rise.
The MACD lines are approaching a bullish crossover, while the histogram is still negative. If the MACD crosses above the signal line, it may confirm a shift in trend. Cumulative Volume Delta (CVD) is also rising, showing increased buyer interest.
Polkadot’s price action and volume indicate a possible move toward $3.80. A breakout above this resistance—combined with increasing volume, would reinforce the bullish case.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
The post Polkadot Price Signals Rebound with Technical Indicators appeared first on The Market Periodical.
