Polkadot (DOT) can surpass the $2 mark: Opportunities only arise when…

TapChiBitcoin
DOT0.12%
BTC0.81%
LONG-2.06%

Polkadot (DOT) has experienced a prolonged downtrend since March 2025. However, in the past week, DOT unexpectedly gained 4.41% — a notable short-term improvement signal. This development becomes especially significant as the cryptocurrency market remains under strong pressure from Bitcoin (BTC)'s unpredictable fluctuations, along with prevailing cautious sentiment and investor apprehension across the entire market.

Analyzing DOT trend across multiple timeframes

At the time of writing, Polkadot’s weekly trend still maintains a bearish tone. Breakdown points of the downtrend structure (orange) have appeared since September, while the oscillating structure on the weekly chart has continuously leaned toward a downtrend since March.

The A/D indicator reflects stable selling pressure, while the Awesome Oscillator emphasizes strong bearish momentum. The imbalance zone around $2.5 (white box) is considered a potential supply area, which could influence the price before DOT continues its decline on this timeframe.

Weekly DOT/USDT chart | Source: TradingViewMeanwhile, on the 4-hour chart, the bullish reversal trend has become clear over the past week. Two structure-breaking points of the upward trend were recorded when previous lows at $1.75 and $1.85 (blue) were broken.

The A/D indicator is rising, and the Awesome Oscillator shows increasing bullish momentum. The short-term upward trend on H4 could push DOT toward the psychological resistance level of $2, or even target the weekly supply zone around $2.5.

4-hour DOT/USDT chart | Source: TradingView## Risks for DOT bulls

The resistance zone around $90,000 has become a strong barrier for Bitcoin in recent weeks. Although market liquidity has surged, BTC traders still need to exercise extreme caution. This also means that altcoins like Polkadot may face difficulties breaking out without support from sustainable demand.

On H4 and lower timeframes, current momentum favors the bulls. However, this short-term trend does not imply that the trend on higher timeframes will reverse. Long-term investors should closely monitor this rebound to make informed decisions.

Trader actions – Potential profit from the rebound

Cautious traders may choose to stay on the sidelines as the trend on higher timeframes remains bearish. On the H4 chart, the current upward momentum could reach $2.11. The 30-day liquidation map shows strong pressure from accumulated Short positions, laying the groundwork for the next rally.

Source: CoinGlass The $2.11 target is attractive due to its proximity to a key liquidity zone. Traders might consider taking profits around $2.0–$2.1 to optimize gains. Conversely, if the price drops below $1.82, setting a Long order will become invalid, signaling a risk that traders should be aware of.

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