Polkadot’s native token, DOT, has successfully recaptured the significant $4.60 resistance level, a price point that had consistently acted as a barrier earlier this year. This breakout signals a potential end to a prolonged descending trendline and suggests renewed positive momentum for the asset.
Technical indicators are bolstering the bullish case. DOT’s Relative Strength Index (RSI) stands at a neutral 55.92, indicating room for further upward movement without immediate overbought conditions. Furthermore, the Moving Average Convergence Divergence (MACD) indicator has shown bullish behavior, positioning itself above its signal line.
The positive price action coincides with significant advancements on the Polkadot network. Recent upgrades like Elastic Scaling, designed to enhance network capacity and efficiency, and anticipation surrounding the upcoming JAM protocol upgrade have collectively improved the project’s fundamental outlook.
Supporting the technical breakout, on-chain data reveals increased user engagement, characterized by rising wallet activity. Market sentiment appears cautiously optimistic, reflected by a long/short ratio of 1.06 among traders currently.
Should DOT successfully maintain its position above the crucial $4.60 support zone and sustain its current momentum, analysts identify the next major price targets at approximately $8, followed by $12, opening the door for significant potential upside.