Polkadot is showing early stabilization after a downtrend, with weakening selling pressure.
The $1.35 resistance is key, and a breakout above it could trigger a move toward higher levels.
Until resistance is reclaimed, the trend remains fragile, with risk of a prolonged consolidation.
Polkadot (DOT) is starting to push back against sustained bearish pressure.
After weeks of steady decline, the altcoin is now showing early signs of stabilization.
A potential recovery structure is beginning to form, raising the prospect of a stronger upside move.
However, this trend change is still developing. While sellers appear to be losing control, DOT bulls have yet to fully take over.
Even so, if key resistance levels give way, Polkadot’s price could trigger a significant rally, with as much as 55% upside. Here is how.
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However, the recovery remains fragile as the rice action shows a clear shift from aggressive selling to range-bound consolidation.
DOT initially trended lower with consistently lower highs and lower lows. This confirmed strong bearish control.
However, the decline stalled near the $1.13 support zone. Buyers stepped in at this level, preventing further downside.
As a result, the altcoin has formed a cup-and-handle pattern while testing the $1.35 resistance.
Since then, DOT’s price has transitioned into a horizontal range. The asset is now trading between $1.13 support and $1.35 resistance.
This range defines the current market structure. But by the look of things, DOT could be ready to reclaim $1.64 if bulls push past the aforementioned pattern’s neckline.
Meanwhile, on the 4-hour chart, price action shows a gradual formation of higher lows.
This suggests that selling pressure is weakening. However, bulls have not yet reclaimed key resistance. As a result, the trend remains neutral in the short term.
Momentum indicators reinforce this view. The Moving Average Convergence Divergence (MACD) recently crossed bullish and printed green histogram bars.
However, momentum is already flattening. This indicates that buying strength is present but not accelerating.
At the same time, RSI is hovering around the midline near 50. This reflects equilibrium between buyers and sellers. Importantly, it shows there is no strong trend dominance yet.
Looking ahead, the $1.35 level remains critical. A confirmed breakout above this zone would likely trigger a move toward higher resistance levels.
DOT Price Analysis: Stabilization Signs Appear
On the daily timeframe, Polkadot’s price remains under sustained bearish pressure, trading within a well-established descending structure.
Despite multiple recovery attempts, DOT has consistently printed lower highs, reinforcing the broader downtrend.
Currently, the price hovers near $1.28, holding just above a key base around $1.10.
However, signs of early stabilization are emerging. The latest bounce from the lower support zone suggests buyers are slowly defending downside territory.
Still, momentum remains fragile, and trend confirmation has not yet shifted.
Meanwhile, the CMF has turned slightly positive, suggesting a return of mild capital inflows to the market.
In addition, BBP is edging higher from negative territory, hinting at weakening bearish dominance.
If sustained, this could help break above the $1.68 resistance at the 0.236 Fibonacci level.
Even so, resistance remains overhead, with the descending trendline still capping any meaningful upside. Still, if buying pressure increases, the altcoin could rally 55% to $2.
For now, until Polkadot’s price breaks and holds above $1.40, the structure continues to favor consolidation within a broader bearish trend, with recovery still in its early stages.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
