- Polkadot is retesting the $3.75 support, a key historical level last seen in October 2023.
- A bullish reversal requires reclaiming this zone and breaking above the local high.
- Market structure remains bearish until a higher low forms, signaling a potential shift.
- If confirmed, DOT could target $7.67—the upper boundary of its long-term trading range.
Polkadot Tests Historical $3.75 Support Zone Amid Bearish Market Structure
Polkadot (DOT) is once again approaching the $3.75 support level, a zone it last visited in October 2023. This area holds significant technical importance as it aligns with the value area low and point of control from historical price action. Traders are now watching for signs of a broader range-bound structure forming, suggesting a potential macro bottom.
A Critical Juncture for Polkadot Price
The $3.75 region is not just a psychological support but also a multi-month structural level where buyers previously defended price action. This confluence zone could mark the start of a larger reversal—if price can hold and reclaim the level decisively.
Also Read: Polkadot (DOT) Elliott Wave Analysis: Preparing for the Next Bullish Wave
Polkadot’s broader market structure remains bearish, characterized by lower highs and lower lows. Even though a brief bounce attempted to reverse the downtrend, sellers maintained control, retracing the gains. Currently, DOT sits at the base of its high time frame trading range, a zone where historical reversals often start.
Signs to Watch for a Reversal
For a true bullish reversal, Polkadot must achieve three key technical milestones:
- Reclaim the $3.75 support with conviction.
- Break above the recent local high.
- Form a higher low to confirm a shift in market structure.
Also Read: Polkadot (DOT) Poised for Deeper Correction: Elliott Wave Analysis
If these conditions are met, price could rally toward the $7.67 resistance level, the upper boundary of the larger trading range.
Otherwise, the price remains trapped in a range-bound structure, oscillating between support and resistance without clear directional bias.
A Bear Trap or More Downside Ahead?
The current price action could represent a deviation below value, where a quick reclaim of the point of control and rising volume might trigger a bear trap. If this scenario plays out, short covering and fresh accumulation could fuel a sharp rally.
However, without a clear shift in structure, the bearish trend remains intact. Traders should watch for decisive moves and increased trading volume as confirmation signals.
What’s Next for Polkadot (DOT)?
If Polkadot successfully confirms support above $3.75 and breaks past the local high, expect a potential climb toward $7.67. Until then, the market remains range-bound, and caution is advised.
