Polkadot (DOT) Explodes 25%: Is a Steady Breakout Now Underway?

• 25% rally has taken the Polkadot price toward $1.59. 
• DOT’s trading volume has skyrocketed by over 524%.

As of 26th February, there is a 4.98% recovery spike in the crypto market. With this marching bullish support, the price movement of the assets has been stepped up, attempting to go green in the long-term. It is worth noting that the Fear and Greed Index value is at 16, keeping the broader sentiment in extreme fear. Meanwhile, Polkadot (DOT) has steadily rallied by over 25.99%. 

If this surge sustains, an absolute bullish momentum can be confirmed. In the early hours, the asset traded at a bottom level of $1.26, and with the bullish encounter, the DOT price has mounted toward a peak at around $1.75. To be in this zone, it has tested a series of resistances between $1.31 and $1.70. 

At press time, Polkadot traded in the $1.59 zone, and the market cap had reached $2.64 billion. Moreover, the daily trading volume has skyrocketed by over 524%, touching $848.57 million. According to Coinglass data, the market has experienced a $6.41 million in DOT liquidations over the last 24 hours. 

DOT price (Source: CMC)

With Polkadot’s active bullish push, the price might rise toward the crucial resistance at around $1.81. If the upside pressure is prolonged, it could trigger the emergence of a golden cross and send the price up above the $2.03 mark. Assuming DOT takes a bearish turn, the price could instantly slip and find its support range at $1.37. Upon the downside correction gains more traction, the death cross might take place. Eventually, the price would retrace below $1.15. 

Bullish Momentum Builds for Polkadot as Indicators Turn Positive

Polkadot’s Moving Average Convergence Divergence (MACD) line is above the signal line, above the zero line. It implies strong bullish momentum. The short-term and broader trends are positive. This crossover strengthens the current outlook for continued upward movement. 

In addition, the Chaikin Money Flow (CMF) indicator found at 0.12 points to moderate buying pressure in the DOT market. Also, the capital is flowing into the asset, and accumulation is taking place. If the value continues to rise, it could support further price strength. 

The Bull Bear Power (BBP) reading resting at 0.326 indicates strong bullish dominance. The upside may continue if the buying pressure remains consistent. Notably, the Polkadot price is trading above its average strength. Besides, DOT’s daily Relative Strength Index (RSI) is positioned at 74.85 suggests its overbought condition, reflecting very strong bullish sentiment. The price has been pushed higher rapidly. However, it increases the risk of a short-term pullback.

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