Analyst forecasts Polkadot (DOT) cryptocurrency to rise to $12

This area acts as a lower level, preventing a more serious decline in the price of the coin.

For a significant increase in the price of Polkadot, it is necessary to overcome the key resistance levels of $7.5 and $11.55, with the latter being the peak price at the beginning of this year. If the bulls manage to overcome the above resistance levels, it could trigger a rally to $12, the expert noted.

At the same time, he emphasized that if the price falls below the critical support at $5.5, it could invalidate the current bullish outlook and signal a longer period of decline.

Despite recent price fluctuations, Polkadot's long-term value proposition remains favorable for many investors as Polkadot seeks to solve one of the biggest challenges in the blockchain space - interoperability.

Note that the Relative Strength Index (RSI) is showing bullish divergence, a scenario in which the RSI creates higher lows even as price continues to decline.

This divergence also suggests that buying pressure may increase, which prepares the ground for a reversal in the coin's price. It remains to wait for the moment when the DOT shows growth, so says the analyst.