Polkadot tests a very significant area of resistance between $3 and $4. This region has been a war zone between bulls and bears. One multi-year trendline, previously resistance, has since transitioned into support. Bulls are anticipating that this region sparks a much larger reversal.
Technical analysts wonder whether that region might be a tipping point. Crypto analyst Crypto Patel suggests $3 to $4 marks a perfect accumulation area. DOT right now exchanges hands at $4.02, right dead center within that area. The price broke a trendline earlier this year, which Patel believes was the start of a broader trend shift.
Key technical retest signals potential upside
Since then, Price has come back several times to retest this region, solidifying its significance. Each rally further validates evidence favoring a potential base area. The bullish thesis still feels a bit fragile, however, should that $3 support break. This would require a long DOT revaluation.
Patel’s chart shows Polkadot retesting the trendline after a breakout. That’s where reversals solidify. If support holds, targets are $9.24 and $16.67. The macro target’s a lot higher, at $30 or even $40.85, a repeat of past cycle tops.
The sell-down during the past 7.04% pushed DOT below its primary short-term indicators. It’s currently below the 7-day SMA of $4.07 and the 20-day SMA at $4.14. Breakdowns usually attract further selling unless buyers swiftly reassert themselves and re-establish the upmove.
Volume on Binance was $33.3 million over 24 hours, reflecting average trading action. DOT/USDT is trading between $4.31 and $3.90. With DOT toward the lows, momentum continues to be weak. A breakdown could spark additional volatility and bearish action.
Polkadot market stats and future outlook
CoinGecko data shows DOT being sold at $4.02 with a 4.24% loss over a 24-hour interval. Weekly losses are 8.73%. Despite that, traders are still viewing the change as a consolidation, but not a collapse, since no new fundamentals have developed.
The $3 line remains the hard line in the sand. If bulls get past that level, upward momentum could be back sooner rather than later. However, a breakdown would dissipate bullish structure and instigate another selloff.
