Polkadot is showing market resilience, with price action indicating potential momentum. After touching the $4.81 support level, the token demonstrated strength by forming a higher low on February 3rd—a technical indicator that suggests investors might be accumulating the asset. This pattern could signal a shift in market sentiment for DOT.
However, for the 2025 bullish thesis to hold, DOT must display strength in the coming days according to InvestingHaven. A breakout above resistance would confirm a trend reversal and establish a bullish trajectory.
DOT has been in a prolonged downtrend since peaking in 2021, consistently forming lower highs and lows as seen on the chart by InvestingHaven. Recent price action shows signs of bottoming out, with the $4.81–$7.57 range acting as a critical support zone.
$DOT Holding Key Support
— InvestingHaven (@InvestingHaven) February 5, 2025
DOT tested support but set a higher low on Feb 3, a promising sign.
For the 2025 bullish outlook to hold, #DOT needs to show strength this week.
A breakout above resistance would confirm momentum. pic.twitter.com/tXYxreAOHm
At publication, DOT is trading at $4.83, reflecting a 0.70% daily increase but a 14.44% decline over the past week, according to CoinGecko. The next major resistance level is at $10, which DOT must reclaim to establish a strong bullish structure.
Beyond this, the 2025 target range of $14.11–$23.45 aligns with Fibonacci retracement levels and historical resistance points. If DOT maintains its upward momentum, the next upside targets could be $23.45 and potentially $36.36 in an extended bull run.
What you'll learn 👉
Polkadot Price Trend Analysis
In the short term, DOT’s recent higher low on February 3 hints at possible accumulation. This formation often precedes a trend reversal, though confirmation is required through a sustained breakout above resistance.
Volume remains moderate, indicating buying interest, but a substantial increase would strengthen the bullish case. From a macro perspective, DOT remains in a bearish structure.
However, if the support range of $4.81–$7.57 holds, the asset could transition into an accumulation phase before a potential breakout. Losing this support would invalidate the bullish outlook and expose DOT to further downside risk.
Read also: Is AAVE Price Building Momentum for a Breakout? Key Levels to Watch
DOT’s Potential Price Outcome
For a bullish reversal, DOT must hold its current support and reclaim $7.57. A break above $10 would confirm the shift in momentum, targeting the $14.11–$23.45 range in 2025. If DOT surpasses $23.45, higher Fibonacci levels could come into play, with $36.36 being a long-term possibility.
On the bearish side, failure to hold $4.81 could lead to a retest of the $4 region, undermining bullish expectations. Additionally, if DOT struggles to reclaim $7.57 and $10, it may remain in consolidation or continue downward.
Polkadot’s ability to maintain its higher low and key support zone will determine its trajectory in the coming weeks. Breaking through the $10 resistance remains critical for confirming a long-term bullish outlook, while a drop below $4.81 could signal further downside risks.
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