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Polkadot (DOT) Nears $6.80 Breakout — Bullish Momentum Building

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • DOT stabilizing after correction stage near completion 
  • At the key Fibonacci retracement level of 0.618 
  • Price is currently testing descending resistance 

Polkadot (DOT) is exhibiting signs of completing a corrective phase on its higher time frame and appears poised to start a new impulsive wave.

The daily chart reveals a descending WXYXZ pattern nearing its conclusion, while the 1-hour chart shows the initial stages of a potential upward impulsive structure.

This analysis evaluates the market’s position and projects the possible next moves.

DOT Price Analysis 

The daily chart shows that Polkadot has been in a prolonged correction since its peak at $11.65 on Dec. 14. It completed a five-wave impulsive structure before transitioning into a complex WXYXZ corrective pattern.

The price stabilizes near the 0.618 Fibonacci retracement level at $6.45, a critical support zone that usually acts as a reversal point in the Elliott Wave Theory. 

The descending resistance trendline from the corrective structure is being tested, with the current price hovering near $6.74. A breakout above this level likely confirms the start of a new bullish impulsive wave.

DOT price analysis
DOTUSD bullish breakout ahead | Credit: Nikola Lazic/TradingView 

The daily Relative Strength Index (RSI) remains neutral, but its upward trajectory suggests improving momentum.

Should the price fail to break the descending resistance, deeper retracements toward $5.19 (0.786 Fibonacci retracement) could occur.

However, the confluence of Fibonacci support and horizontal levels around $6.31 increases the likelihood of a reversal from current levels.

DOT Price Prediction 

The 1-hour chart shows the possible outcome of an impulsive five-wave structure. Wave (i) targets the 0.5 Fibonacci retracement level at $7.34, with Wave (ii) correcting downward to test support near the 0.618 Fibonacci retracement level ($6.74–$6.45).

This corrective wave aligns with a reset in RSI momentum, creating a favorable setup for the next upward leg.

DOT 1h chart
DOTUSD bullish breakout ahead | Credit: Nikola Lazic/TradingView 

If Wave (ii) holds above $6.45, Wave (iii) could extend significantly higher, targeting the 0.382 Fibonacci extension at $8.22 and the 0.236 extension at $9.32.

These targets align with horizontal resistance levels on the daily chart, reinforcing their significance.

A failure to hold the $6.31 support would invalidate this impulsive wave structure, exposing the price to a retest of $5.19 (0.786 retracement).

However, the overall price structure and momentum indicators favor the bullish scenario.

Key Levels to Watch

  • Immediate Resistance: $7.34 (0.5 Fibonacci retracement of the larger structure).
  • Secondary Resistance: $8.22 (0.382 Fib retracement)
  • Immediate Support: $6.74 
  • Critical Support: $6.31 (0.618 Fibonacci retracement of the daily correction) and $5.19 (0.786 retracement).
  • Bullish Target for Wave (iii): $8.22–$9.32 if upward momentum sustains.
  • Invalidation Zone: Below $6.31, signaling deeper corrective action.

 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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