Can DOT get to the $5.70s and run higher?

TLDR

• DOT has broken the crucial $4.53 resistance level, opening the path to $4.97 and potentially $5.23.
• DOT's breakout from its main downtrend line and support above $4.22 is a positive sign.
• RSI in overbought territory (71) is not discouraging, and no bearish divergences are present.
• We predict a short-term target of $5.23 and potential medium-term gains to $5.77.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

The break above the $4.53 horizontal resistance is key for DOT and should now give DOT enough fuel to push onto the $4.97 horizontal level and then the $5.23 area if $4.93 can be overcome. 

We feel that DOT can head to $5.23 simply due to DOT breaking out from its main downtrend line while also getting above and building support above the $4.22 level. 

DOT 1D

RSI and funding rates

At 71, the RSI is now in overbought territory for the first time. However, this isn’t something that should put us off.  We’ve seen other coins go heavily into overbought territory only to achieve more meaningful runs to the upside. For now, there are no bearish divergences. DOT could have more room to run.

The funding rate is positive, while the open interest is still relatively low. This is a healthy setup mechanics-wise and should aid DOT to continue a move higher.  

Cryptonary’s take

Assuming BTC can hold up, we feel DOT can continue to head higher. We have a short-term target of $5.23. In the medium term, if we continue to see bullish price action, then we may get a move into $5.77.  

Action

• We are not taking any new action on DOT. We took a long/buy position in the $4.30’s for a move higher. We’re looking for this to continue into the $5’s in the short term.