Polkadot Teeters at Key Resistance – Will Bulls Break Through or Face a Brutal Reversal?

DOT’s price action dances on a knife’s edge—flirting with resistance levels that could trigger a breakout or a nasty pullback. Traders eye the charts like hawks, knowing one false move could turn gains into regrets. And let’s be honest: in crypto, ’key resistance’ is just a fancy way of saying ’place where bagholders pray.’

Polkadot retains a bearish swing structure, but traders can be hopeful

Source: DOT/USDT on TradingView

The swing structure in question on the 1-day chart was captured by the Fibonacci retracement levels. The high at $4.76 must be beaten to shift the structure bullishly. Meanwhile, the $4.18 and $4.44 levels were the key nearby resistances.

The A/D indicator has been flat over the past month. The lack of uptrend meant buying pressure was weak, and was a hint that bulls might not be ready to drive an uptrend. At the time of writing, the Awesome Oscillator was still below the zero line – A sign that momentum was not bullish on this timeframe yet.

The DMI also reflected a lack of a clear trend, with both the -DI and +DI below 20. The price action and the technical indicators noted wariness from market participants over the past week.

Source: DOT/USDT on TradingView

Zooming in, the bullish momentum seemed to be clearer.

The price has set a series of higher highs and higher lows over the past two weeks, forming a bullish structure. The DMI also reflected a strong uptrend in progress, with the A/D’s uptick hinting at greater demand for Polkadot.

Source: Coinglass

The liquidation heatmap also highlighted the risks of entering long positions now. The $4-$4.18 and the $4.3-$4.4 regions are both magnetic zones for the price. They could pull DOT higher, but they also pose the risk of a bearish reversal thereafter.

With the 1-day structure not yet bullish, traders in a long position can look to book profits at the $4.18 and $4.44 resistance levels. A surge beyond these two levels, and a retest of $4.44 or $4.76 as support, could be used to enter long positions for the next upward move.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion