Polkadot (DOT) is trading at $1.23 on Monday, declining 4.45% over the past 24 hours as analysts flagged a potential reversal forming near a key support zone. Despite the drop, trading activity increased significantly, with daily volume rising 21.22% to $140.87 million, indicating heightened market participation.
The token is currently testing a historically significant support range between $1.20 and $1.70, an area that has previously attracted buyers during prolonged declines. Price data sourced from CoinMarketCap reflects market conditions at the time of writing.
While this level has triggered rebounds in the past, repeated tests may weaken its strength, increasing the risk of a breakdown if demand fails to materialize.
Potential Reversal Zone Emerging for Polkadot
Crypto analyst ARI ZAIM said in a recent market update on X that DOT continues to trade within a long-term descending channel that has remained intact since its 2021 peak. The structure reflects a sustained bearish trend, defined by lower highs and lower lows, with repeated rejections at major resistance zones.
Volume patterns suggest limited institutional accumulation, as buying activity has not consistently increased during consolidation phases. This indicates that sellers still dominate the broader trend. However, the current price position near the lower boundary of the channel presents a potential inflection point.
Analysts suggest that if this support base holds, DOT could gradually recover toward $1.70, followed by $3.00 and $4.30. A confirmed breakout above these levels would mark a structural shift toward bullish momentum. However, this outlook remains speculative and dependent on market confirmation.
Also Read | Polkadot Near Critical Support as Bearish Signals Intensify
DOT Attempting to Reclaim Moving Average
A separate analysis by Whales_Crypto_Trading highlights a falling wedge pattern forming on the DOT/USDT chart, a structure commonly associated with bullish reversals after extended downtrends.
The pattern shows price compressing between converging trendlines, indicating weakening bearish momentum. Recent price action suggests a bounce from the wedge’s lower boundary, aligning with horizontal support and creating a confluence zone where buyers may step in.
DOT is also attempting to reclaim a key moving average, which could signal an early shift in momentum if sustained. For the bullish scenario to materialize, DOT must break above the wedge’s upper boundary and reclaim nearby resistance levels.
A confirmed breakout, supported by rising volume, could accelerate price movement toward higher targets, including the $10 region. Conversely, a decisive move below $1.20 would invalidate the setup and likely extend the downtrend.
Also Read | Polkadot (DOT) Price Eyes $2.70 Amid Weak RSI and MACD Bearish Signals
