- DOT has broken a falling wedge resistance with increased bullish volume.
- Price currently trades at $4.11, with resistance seen at $4.19.
- A breakout would result in a movement of 2.84x, breaking up towards the $8.00 region.
Polkadot (DOT) finally escaped a downtrend bearish wedge formation that has persisted since December 2023. The escape happened simultaneously with a dramatic increase in bullish volume, reflecting keen support at levels. DOT is currently trading at $4.11, 2.3% higher over the past 24 hours. A near resistance is still at $4.19, and support is at $3.96.
This wedge pattern had compressed price action within descending trendlines, forming consistent lower highs and lower lows. Recent price behavior shifted momentum as DOT tested the wedge resistance for the third time. Notably, the latest push succeeded in closing above the upper trendline, confirming a structural breakout. This development alters the short-term market structure, with momentum favoring buyers for now.
Wedge Breakout Targets $8.00 as DOT Holds Above Key Support Levels
The breakout move from the wedge projects a price target based on the widest part of the pattern. According to the chart setup, this measured move points toward a 2.84x potential upside from the breakout level. That projection sets the $8.00 area as a significant level to monitor in the medium term.
So far, price action supports this estimate. The bullish impulse shows sustained buying interest, as seen in the extended daily candle following the breakout. Momentum could continue if DOT maintains its trajectory above the $4.19 resistance. Price will also need to hold above $3.96 to keep the breakout structure valid.
Resistance and Support Zones Narrow the Range
Currently, DOT is operating within a tightly defined range. Immediate resistance stands at $4.19, with local support forming at $3.96. Volume profile data shows increased transaction activity around this zone, confirming market attention. DOT’s 24-hour range reflects this movement, with fluctuations between these levels.
Should DOT maintain above resistance, further upside movement remains likely under current breakout momentum. Meanwhile, failure to hold above support would negate the breakout and invalidate the projected move.
