- Polkadot (DOT) rebounds short-term, but overall trend still shows downside pressure; key breakout above $2.31 needed.
- DOT hits 161.8% extension, signaling caution as no clear trend reversal has formed yet.
- Compressed price zone indicates potential move, with DOT facing critical resistance levels in the coming days.
Polkadot (DOT) is experiencing a short-term rebound, although the overall market structure still signals downside pressure. Investors remain cautious, as the prevailing trend shows no clear change. A strong breakout above major resistance is needed to confirm a market reversal.
Polkadot Price Hits 161.8% Extension
Although the temporary trend appears positive, the larger picture of the price trend does cause concern. Market analyst More Crypto Online pointed out that the early negative views of DOT’s price trend were correct on target. According to market analysis, the recent market activity indicates that the initial warning of caution was correct.
On the technical front, DOT has achieved the 161.8% extension target. The region is being closely observed for any signs of stopping or turning around, but there is no indication of this at the moment. Apart from Crypto Online, in order to form a genuine low, it was required that the price rise above $2.31 and hold on to it.
At the time of writing, DOT is trading at $1.83, registering a gain of 3.69% over the last 24 hours. The token registered a trading volume of $275.99 million within the last 24 hours, along with a market capitalization of $3.03 billion.
Also Read | Hyperliquid Sells Off Sharply, Technical Bounce Could Hit $33
Polkadot Near Critical Price Zone
The other market observer, GainMuse, noticed slightly different action. GainMuse writes that DOT is starting to push back near the compressed price zone. This compressed price zone means that the market is ready for a larger move. In the event that demand continues to build, the DOT could attempt to push towards the horizontal resistance zone.
Currently, Polkadot appears to be at a critical juncture. The current price movement provides short-term relief, though the key levels above are resistances. The reaction to these levels in the coming days will be crucial in deciding whether the DOT token can create a base for a potential rise or be trapped within its larger downward trajectory.
Also Read | Coinbase Files Lawsuits Against US States Over Prediction Markets Regulation
