Polkadot (DOT) Price Stability Fuels Hopes For Short-Term Recovery

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Polkadot (DOT) has been quietly building a strong foundation, with its price stabilizing after a period of volatility. This consolidation phase often serves as a launching pad for a potential upward move as buyers step in. Traders are now eyeing key resistance levels, which, if broken, could trigger a short-term rally.

As the crypto market shows signs of recovery, DOT’s technical setup and fundamentals suggest that a bullish breakout might be on the horizon. Could this be the start of a fresh rally for Polkadot?

Market Sentiment Improves As Polkadot Holds Steady

DOT is exhibiting resilience as it continues to hold firm above the $3.5 support zone, signaling a potential shift in market sentiment. This stability is a positive sign, suggesting that selling pressure is subsiding, allowing bullish momentum to build gradually. The market’s confidence in Polkadot appears to be improving, as reflected by steady buying interest and a noticeable slowdown in bearish activity.

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Moreover, DOT’s resilience amid broader market shifts highlights its ability to attract demand at current levels. If market sentiment continues to improve, an upward push could be imminent. However, a decisive move above key resistance levels is needed to confirm a sustained recovery and prevent prolonged consolidation or a possible retracement.

DOT holding above key level | Source: DOTUSDT on Tradingview.comA key bullish signal emerges from the MACD indicator, which is gradually rising toward the average, hinting at a potential shift in momentum. This upward movement suggests that bearish pressure is fading, allowing buyers to regain control and build confidence in a possible trend reversal

As the MACD line approaches the average, buying interest has risen, which could translate into a stronger push toward higher price levels. If this trend continues, it may serve as an early indication of a breakout attempt.

Short-Term Rally Or Fakeout? Key Levels To Monitor

Polkadot’s price stability has sparked hopes for a short-term rally, but traders remain cautious about the possibility of a fakeout. Key resistance and support levels will be crucial in determining the next move

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A breakout above the $4.8 resistance level could serve as a strong confirmation of upside momentum, signaling increased buyer interest. Should this level be successfully breached, DOT may gain the necessary traction to push higher, targeting the resistance zones at $6.2 and $7.7

However, failure to sustain upward movement may indicate a lack of strong buying pressure, leading to a retracement toward $3.5. Monitoring price action around critical levels, volume, and technical indicators will be essential in assessing whether Polkadot is gearing up for a true breakout or merely experiencing a temporary uptick.

DOT trading at $4.1 on the 1D chart | Source: DOTUSDT on Tradingview.com