- Polkadot holds firm at $4.00 support as bulls anticipate a breakout toward key resistance levels at $8.54, $11.73, and $14.41.
- DOT forms a descending triangle with Fibonacci targets, signaling a possible reversal if accumulation continues at current support.
- Technical confluence, declining volatility, and volume spikes suggest DOT may enter a strong bullish phase from current levels.
As per Rose Premium, Polkadot (DOT) is testing a crucial support level near $4.00, signaling a potential turning point in its long-term trend. The asset currently trades at $3.949, reflecting a 3.45% decline in the weekly session. This price action comes as DOT consolidates near the lower boundary of a long-standing parallel channel on the Binance weekly timeframe. This zone has served as a historical floor since March 2025. Traders are now closely monitoring volume spikes and buying pressure, which suggest accumulation is underway.
Key Technical Confluences Strengthen Bullish Case
DOT has formed a descending triangle, with the horizontal base aligning at $4.00. This pattern intersects with a long-term descending resistance line. Hence, the confluence creates a critical support zone, making current levels particularly important. Moreover, historical data confirms that DOT has respected this support multiple times since early 2024.
Source: Rose Premium
Additionally, Fibonacci retracement levels provide a roadmap for potential upward targets. These levels, particularly the 0.236 and 0.382 zones, highlight areas where price may face resistance. Consequently, any breakout above the triangle could lead DOT to test higher levels.
Besides the structural setup, there is declining volatility. This contraction often precedes a major move, increasing the odds of a price breakout. A large blue arrow on the chart suggests a bullish path, pointing toward $8.542, $11.730, and $14.412. These targets align with historical resistance zones from earlier 2024 price cycles.
Historical Context Supports Upside Potential
Polkadot’s previous rallies offer context for its current consolidation. In Q1 2024, DOT surged to $10 before entering a downtrend. A secondary rally in late 2024 pushed prices to $9 before fading. However, each rally formed higher lows until the current test of long-term support.
A circled marker labeled “2” appears around May 2025 on the chart timeline. This may signify the beginning of a new accumulation phase. Moreover, consistent buying near the $4.00 mark suggests investor confidence in DOT’s long-term potential.
