Volatility Ahead for Polkadot: $4.60 Resistance Holds the Key to DOT’s Next Move

DOT is still testing the long term $4.60 resistance level, that when closed with volume would be a macro breakout.

If it can make clear break above $4.60, it may explode upwards with mid-term targets $8-$12 provided there is follow-through buying.

Breaking of resistance can lead DOT back to its historical support zones, reaffirming bearish pressure within the descending channel.

Polkadot (DOT) was priced at $4.17 after a 1.7% increase in the past 24 hours, testing key resistance levels. Price continues to trade around the $4.60 region, an area which has been strong resistance repeatedly for months. Market action forms a 24-hour range of $4.09 to $4.19, with traders keenly observing the next move. A decisive breakout can signal a potential reversal of the long-term macro descending channel.

The price action of DOT has also been consolidating around 4.60 that is a very key resistive area on the chart. A continued rise beyond this point could validate a breakout, and targets of around $8 and $12 would be available in the event of increasing momentum. This situation hinges on the buying pressure of volumes and follow through, which is being monitored by short-term traders. However, price rejection at this zone could result in renewed downward movement.

DOT Faces Key Rejection Risk

Should the price fail to overcome the $4.60 resistance, a decline toward $3.30 or even $2.60 appears likely. These zones have shown historical demand and previously served as strong support levels. The short-term support is currently at 4.09 and is consistent with the prevailing range. Particularly, a break below this indicates a potential pressure in selling, which was taking the price to lower trendline segments on a descending channel.

$4.60 Remains the Decisive Barrier as DOT Awaits Breakout Confirmation

The volume patterns remain relatively stable, implying that market participants are holding out for unequivocal confirmation before committing to bigger sizes. A decisive breakout above the $4.60 level would most likely require a very substantial rise in trading volume to sustain the momentum. Conversely, a rejection there would lead to extended consolidation in the macro falling channel.

Polkadot (DOT) seems to be at a cross-road whereby the next direction provides hints as to whether the break above the $4.60 level is met or the prices drop to support areas. The short-term direction of DOT would be determined by a breakout or a rejection and volatility is likely to be high around these levels.