Polkadot’s price action has formed a structure that could lead to further upside if key levels are broken, according to crypto analyst Rekt Capital. Let’s examine the potential path forward for DOT in the weeks ahead.
What you'll learn 👉
DOT Finds Support Above Demand Zone
As Rekt Capital points out, Polkadot recently dug into its historical demand area between $3.5 and $4. This demand zone provided strong support, allowing DOT to form a new market structure.
After retesting the bottom of this structure as support, DOT appears ready for the next leg up, if bulls can maintain the current floor.
Breaking Downtrend Resistance Could Unlock Further Gains
DOT has built an ascending structure rising along a diagonal resistance since June. This descending trendline currently sits around $5.
Rekt Capital notes that if DOT can break through this diagonal resistance decisively, it opens the door to revisit higher levels around $7.
Key Levels to Watch
To summarize, the key levels to watch for DOT are:
- Support at $3.5-$4 demand zone needs to hold
- Break above $5 downtrend resistance could signal a bullish breakout
- Above $5 opens upside path back towards $7
If DOT bulls can maintain the demand zone floor and push the price over downtrend resistance, Polkadot could be poised to climb back towards its recent highs in the weeks ahead.
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