Polkadot is undergoing a short-term correction but continues to hold critical support at $3.75. As long as this level holds, the bullish market structure remains intact, with higher resistance targets in sight.
Summary
- DOT is holding key support at $3.75, aligned with the point of control and high timeframe structure.
- Breaking $5.09 could trigger a rally towards $7.67 resistance.
- Bullish volume influx is essential for sustaining upward momentum.
Polkadot price action has entered a corrective phase on the intraday timeframe after a recent bullish move. Despite this pullback, Polkadot (DOT) is still trading around a high-volume level, the point of control, which is providing strong underlying support. The current market setup suggests that holding this level could lead to a renewed rally toward key resistance levels, potentially resuming the broader uptrend.
Key technical points
- Key Support: $3.75, aligned with the high timeframe support and current point of control.
- First Major Resistance: $5.09, in confluence with the value area high and local high.
- Next Higher Resistance: $7.67, aligning with the high timeframe downtrend resistance.
The recent pullback in Polkadot has brought price action back to the $3.75 support level, which is a critical zone due to its technical confluence with both the point of control and the broader high-timeframe structure. Trading at the point of control often creates heightened intraday volatility, as this is a key volume node attracting both buyers and sellers. Despite this volatility, maintaining price above $3.75 is essential to preserving the bullish structure.
Above the current level, the first significant resistance is at $5.09. This zone is notable because it combines the value area high with the local swing high, making it a magnet for price if momentum returns. Reclaiming this resistance would complete a full market auction rotation, a move from the value area low to the value area high, and further reinforce bullish sentiment.
If $5.09 is breached with conviction, the technical roadmap opens toward $7.67, where the next high-timeframe downtrend resistance resides. This would be a significant upside target, as breaking this level could signal a broader trend reversal into a sustained bullish cycle for DOT.
The volume profile also supports the bullish case, showing healthy influxes in buying volume during previous rallies. For the uptrend to continue, these bullish volume surges must return as price approaches resistance. A lack of volume could stall the move, potentially leading to further consolidation at current levels.
What to expect in the coming price action
If DOT holds the $3.75 support and reclaims $5.09 on increasing bullish volume, the probability of a rally toward $7.67 increases significantly. Failure to hold $3.75 could lead to a deeper retracement, but current market structure suggests bulls remain in control.
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