Polkadot's Potential Surge Beyond $2 Hinges on Key Market Conditions
Polkadot (DOT) has been in a prolonged bearish trend since March 2025, despite achieving a 4.41% gain in the past week. This short-term performance is notable given the current volatility of Bitcoin (BTC) and widespread market uncertainty.
Analyzing DOT's Market Trends
The weekly analysis of Polkadot shows a consistent bearish pattern, with structural breaks since September. Selling pressure remains evident, as highlighted by the A/D indicator and the Awesome Oscillator. The $2.5 level may act as a supply zone before a potential further decline.
Short-term Bullish Indicators
The 4-hour chart reveals a shift towards bullish momentum, as indicated by breaches of previous lower highs at $1.75 and $1.85. The A/D indicator and Awesome Oscillator support this trend, suggesting a potential rise to the $2 resistance level and possibly the $2.5 supply zone.
Challenges for DOT Bulls
Despite the bullish short-term trend, the $90k resistance for Bitcoin remains a significant hurdle. Altcoins like Polkadot may struggle to rally due to insufficient demand. Long-term buyers should be cautious of the current bounce.
Trader Strategies for Profit
Risk-averse traders may choose to wait due to the overarching bearish trend. However, the current move could target $2.11, with the 30-day liquidation map indicating short liquidation opportunities. Traders might consider taking profits around the $2.0-$2.1 range, with a stop-loss below $1.82.
Final Thoughts
- Polkadot's short-term rally offers profit opportunities for traders focused on lower timeframes.
- Investors should exercise caution, given the prevailing market fear and limited demand.
Disclaimer: This analysis is based on the writer's perspective and does not constitute financial advice.