(DOT), the multi-chain platform, is experiencing tightening price action, currently trading above the critical support level of $3.98. This comes after a significant 92.91% decline from its peak. The current market setup, characterized by a descending triangle and bolstered by positive Relative Strength Index (RSI) and Awesome Oscillator (AO) indications, suggests a potential bullish breakout.
The $4.31 level, which facilitated a 33% rally and an 11% bounce in mid-June, has emerged as a key hurdle for Polkadot. Overcoming this level could set the stage for an assault on the $4.80 hurdle and possibly even the psychologically significant $5 mark, should the market outlook turn bullish.
However, it’s crucial to note that ‘s influence on altcoins like Polkadot is substantial. A close below the support level, creating a lower low, could invalidate the bullish thesis and potentially trigger a 7% crash to $3.70.
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