Altcoins News

Story: Polkadot Approaches Key Resistance with Bullish Momentum

By Dan Saada

1 / 10

Polkadot (DOT) has shown signs of bullish intent on shorter timeframes, with a recent upward trend catching the attention of traders.

2 / 10

At the time of writing, DOT was trading just above the $4.00 mark, attempting to push past its local resistance at $4.18.

3 / 10

On the 1-day chart, Polkadot retains a bearish swing structure. For DOT to confirm a bullish reversal on the higher timeframe, it needs to break through the $4.76 resistance.

4 / 10

The technical indicators provide a mixed picture. The Accumulation/Distribution (A/D) indicator has been flat throughout the past month, signaling weak buying pressure.

5 / 10

Zooming in to the 4-hour timeframe, the situation appears more optimistic. DOT has carved out a bullish structure over the past two weeks, consistently forming higher highs and…

6 / 10

However, risk remains on the horizon. Data from Coinglass’ liquidation heatmap indicates that the regions between $4.00–$4.18 and $4.30–$4.40 are “magnetic zones.

7 / 10

Given the current landscape, traders holding long positions are being advised to consider taking profits as DOT approaches $4.18 and $4.44.

8 / 10

That said, if Polkadot manages to decisively break above the $4.44 level and retest it successfully as support, traders could look for entry points aiming toward the $4.

9 / 10

Until then, the cautious approach is to treat rallies into resistance zones as profit-taking opportunities rather than signals to accumulate further.

10 / 10

With key levels just ahead and the broader market sentiment fluctuating, traders would be wise to stay alert and avoid overexposure.

The Currency Analytics

Want the full story?