Polkadot (DOT) is approaching a critical point on its weekly chart. The digital asset is trading near the lower boundary of a long-standing parallel channel pattern. This technical formation has provided both resistance and support in the past, making the current zone a decisive level for future movement.
Volume builds near parallel channel support
According to an observation by Rose Premium Signals, DOT trading volume around this lower boundary has shown a noticeable increase. Activity at this level has risen steadily over recent sessions.
Historical data indicates that such volume behavior near strong support areas often aligns with accumulation periods. Price action remains confined within the parallel channel, yet current positioning shows DOT near the channel’s bottom band, where significant interest has emerged.
Additionally, DOT activity points to a consistent build-up in market participation at the support line. Buying strength has intensified, particularly over the last few weeks. The strength of the ongoing response at this technical level could determine the asset’s short-term direction.
What’s next if the support holds?
From the observation made, the next price points have been noted. If the support line remains intact, a rebound could send DOT to fresh targets. The first level is at $6.10, followed by resistance at $7.90. A break above this range could drive the price toward $11.00. If bullish momentum builds further, the next significant upside target lies at $16.00.
These levels reflect previous turning points within the same pattern. Movement toward each mark depends on the strength of the support response, especially under current volume behavior. DOT has held its structure within this multi-week channel. Each price cycle within the channel has seen bounces off the support zone. A similar movement may follow if current momentum persists.
At the time of press, Polkadot is trading at $3.92, down 0.92% over the last 24 hours. The market cap stands at $6.18 billion while the 24-hour volume is $120.36 million, rising 1.54%. The price fluctuated between $3.90 and $4.00 during the past day.
The volume-to-market cap ratio reached 1.91% as the session displayed numerous upward and downward price movements. This later led to increased short-term market instability as the price briefly touched $3.9846 before retracing.
