- DOT trades above its 20-week MA, signaling momentum toward a potential $5 breakout.
- Technical indicators show strength, with RSI and MACD supporting a bullish continuation setup.
- Polkadot’s ecosystem upgrades and rising institutional interest reinforce confidence in its long-term growth.
Polkadot (DOT) is on the edge of breaking upwards in a strong uptrend as the asset moves above its 20-week moving average. Analysts suggest that the network’s improved fundamentals and renewed investor interest could soon push DOT into a confirmed bullish phase. However, a decisive move above the $5 level remains the final trigger for a sustained rally. At the time of writing, DOT was trading at $4.00.
Market Signals Point to Imminent Breakout
According to an analysis prepared by Michael van de Poppe on October 4, 2025, DOT is showing early signs of a reversal after a long consolidation phase. The analyst noted that the token’s position above the 20-week moving average marks a shift in market structure. A breakout beyond $5 would confirm the beginning of a strong upward trend.
The weekly chart shows DOT trading between $3 and $5 for several months, indicating accumulation. Resistance remains near $5, while short-term support is located around $4. According to CW8900, the next sell wall exists at $4.8, and price activity shows that DOT is testing the upper resistance zone around $4.40.
The Relative Strength Index (RSI) remains neutral near 53, suggesting that the market has room for further upward momentum. The MACD indicator also maintains a positive reading, signaling increasing bullish strength. Analysts agree that a weekly close above $5 would align DOT with medium-term moving averages and confirm trend continuation.
Fundamental Growth Strengthens Market Confidence
According to an observation by several market analysts, Polkadot’s ecosystem upgrades and improved interoperability have strengthened its long-term growth outlook. The network’s parachain development and enhanced scalability continue to attract new projects and developers.
These changes support growing adoption and transaction activity within the Polkadot ecosystem. Recent reports indicate that institutional interest in DOT is rising, with inflows into related funds increasing during the third quarter of 2025.
Analysts believe that this increase in confidence, coupled with improved fundamentals, is providing the base to a potential sustained breakout once the $5 level is cleared. Potential targets may reach as high as $6.50 and $8 in the next few months should this be confirmed.
