The trading price of Polkadot (DOT) experienced a significant push on Friday, as its price moved to a higher trading level. The surge was witnessed despite the overall crypto market being down.
DOT Rallied on Friday
Friday was a lucky day for the digital asset, which saw a great boost in the trading price of the asset. Although the surge was not in double-digits, still, it held a lot of significance.
The reason why it held so much significance was that the asset moved in the positive direction in an environment where everything is almost in the negative.
With the price of DOT moving in the positive direction, things have turned out to be very bullish and promising for the asset.
Although Friday was not a good day for the rest of the cryptocurrencies, it witnessed a 5% surge in DOT’s trading price. Due to the surge, the trading price of DOT reached a high of $5.63.
Before the rally had taken place, the value of the asset was at a lower level. The token was hovering at a low of $5.34 but it surged following a strong rally.
DOT Hit the Highest Level since November 20
With the surge taking place, the value of the asset rose quite remarkably. The price rose so much that it was able to hit the highest level since November 20. On that particular day, the value of the asset was $5.65.
$5.65 is a Resistance Level
A closer look at the price chart for DOT also reveals one major thing about the $5.65 mark. It shows that the particular trading price is a strong resistance level for the asset.
It means that the bullish are going to face a tough challenge from the side of the bears as DOT comes closer to $5.65.
They will need to sharpen their rallies and go for even higher gains in order to get past the resistance level. It is also a possibility that the bears may get triggered and start a strong sell spree to bring DOT lower.
However, DOT coming closer to the $5.65 mark also holds a lot of significance. It is an indication that the bulls are neither afraid of reaching this point again nor they are ready to abandon the mark.
They may also pose a great challenge for the bears at a particular level and prove their resilience. If the bulls manage to do it, then the price of DOT may surge past the $5.65 level.
General Market Trend May Help the Bears
Unfortunately, the general market trend is bearish, which is a strong factor that may help the bears if they launch their selling spree.
If the bears launch their selling spree, then more investors will lean on their side. This can trigger a strong selling spree and may bring down DOT to a lower level.
The price of DOT may end up falling to a lower trading mark, where it may hit a level of $5.30 or below that.
Technical Factors Support an Upward Trend
Despite the general market perception, the technical factors seem to be falling in support of the bullish movement. Even when there is strong resistance, the technical indicators are supporting the bulls.
The relative strength index shows it is about to hit the mid-level, currently sitting at 49.87. The RSI has continued with its climb in the past few trading sessions.
This means that the RSI has been supporting a bullish movement. It is closer to hitting the mid-level and with the “overbought” level being around 75, it means the asset has a higher potential for a bullish movement.
The bulls can invest in the asset without the fear of investors selling the asset the very next moment. If all goes well for the asset, then the rally may pick up the pace and may hit a higher level of $6 per DOT.