Polkadot (DOT) is on the brink of a crucial price level, indicating a potential shift in direction. Upcoming sessions will show whether the asset stabilizes or continues its downward trend.
Market Structure and Support Levels
Crypto analyst Lucky has noted a very significant support area for DOT, which is crucial for the asset. The price previously broke from a falling wedge and initiated a strong rally before settling within a descending channel. DOT has been consistently decreasing ever since, forming lower highs and lows. Currently, DOT is consolidating near a support level that has held in past market cycles. If buyers defend this area, a breakout from the descending channel could follow.
Potential Price Movements and Resistance Levels
If the support level holds, DOT could rally toward resistance at $7.59 and $9.91. With strong momentum, the price may extend gains to $11.64, aligning with past recovery patterns. A breakout from the descending channel could signal the beginning of a bullish phase. On the downside, failure to maintain support could result in further declines.
Future of Polkadot and Market Dynamics
Market participants are closely following price activity to gauge what the next large move will be. Market dynamics will play an important role in determining DOT's short-term momentum. The days ahead will provide insight into whether the asset recovers or continues lower.
The upcoming sessions will be decisive for Polkadot, showing whether the asset can overcome the current support level and begin recovery, or continue to weaken.
