Polkadot Price Surges Above $4: RSI Nears Overbought as DOT Targets New Highs

The price of the DOT token has been following the general market trend and has kept rising today. The technical analysis shows important resistances that the bulls need to get past to continue this upward momentum. Additionally, the Polkadot price has continued to stay above the rising trend line and has not broken below it. As such, this level is acting as a strong support for the price. The price is guaranteed to experience a hard stop if it starts falling. 

Is DOT’s Break Above $3.80 the Start of a New Bull Run?

The DOT token currently has strong support at the 0.382 Fibonacci retracement zone. This level has functioned as a strong support level in the past. As such, the Polkadot token could possibly even bounce several times from this level if a bearish movement happens. Despite the long-term bearish trend seen in the DOT price performance, this coin will likely continue surging. The current price of Polkadot is above the $4 level, we can expect the price to go even higher towards new resistance.

Today’s breakout happened as the surge was triggered by the Polkadot price breaking the $3.80 resistance. This level, which had kept the price from rallying before, was also a part of the falling wedge pattern. Additionally, this price zone has been below an important  Fibonacci retracement range as well. As such, it represented a border between a surge to new highs and a force that could create a failed rally, sending the value lower. The wedge had hovered around the $3.70 resistance before a breakout from the upper trendline happened. 

Polkadot Breakout After Escaping the Falling Wedge?

The falling wedge has been known to cause breakouts, as it has been seen again and again. The pattern here was also similar; as the falling wedge trendlines got closer to the converging point, the seller lost control. Although the DOT coin had been trading within this wedge for a time now, a momentary weakness from sellers caused a breakout. As such, with this long-term price channel now broken, this token is expected to see an explosive rise. 

Can DOT Price Sustain Its Momentum Above $4.16?

As of today, the price has experienced an upward surge of 11.48% in the last 24 hours. Currently, the Polkadot price stands at $4.16 and presents an 18.54% weekly surge. As such, we can see that although today’s surge has played the main part in this surge, the trajectory has been bullish. However, if we compare the price with its value one month ago, we see that DOT coin has seen an 11.91% decline. The decline increases when we look at the yearly performance, with the token being 43.47% down.

DOT/USD daily chart, published on TradingView, April 23, 2025

As the DOT/USD daily chart shows, the Polkadot price has been rising steadily today.  The rise is expected to rise even further as the RSI shows a score of nearly 70. This score can be dangerous as it shows the Polkadot token has entered an overbought zone. However, with the ADX indicator showing a score of 44, the trend strength can hold for longer. Therefore, with both volume and strength going up, the price is set to reach new peaks. However, if the RSI keeps climbing in the overbought zone, a bearish reversal could happen. 

Is the $3.80 Support the Key to Polkadot’s Long-Term Rally?

With the current price level continuing its rise to new highs and the strong resistance behind it, DOT is set to soar. Additionally, the strong $3.80 resistance now acts as support, which is essential for the future. Despite this strength in the trend and the bullish technical signs, remaining vigilant to market developments is essential.