Polkadot (DOT) has shown positive movement over the past day, climbing about 2%. The price continues to move in a descending channel, which traders are closely watching.
Polkadot Chart Analysis
The chart under review highlights a descending channel in the 8-hour timeframe. The price keeps moving between the two main lines on the chart. The top line prevents it from going higher, while the bottom line supports it when it falls. Over the past weeks, DOT's price has been trending down each time it hits the top line but finds support at the bottom line. Recently, DOT bounced up from the bottom line, indicating increased buying activity. If the momentum is maintained, the price could test the upper resistance again.
DOT Support and Resistance Levels
The lower boundary of the descending channel has served as a dynamic support level, preventing further decline. We have seen DOT touch this bottom level several times now, and buyers keep stepping in. Meanwhile, the top line keeps the price in check, pushing it back whenever DOT reaches it. For a confirmed bullish breakout, DOT must surpass this resistance zone with increased trading volume. A breakout could indicate a trend shift, opening the possibility of further price gains. If rejection occurs at the upper trendline, the price may continue within the descending channel.
Breakout Potential and Price Targets for Polkadot
According to ZAYK Charts, if DOT successfully breaks out of the descending channel, the next target could be $9. This level aligns with previous resistance points, making it a key area to watch. A breakout would need confirmation through a higher high and a retest of the broken trendline as new support. Market participants will watch for an increase in volume, which could validate the breakout scenario. Without sufficient momentum, DOT's price may remain within the current pattern.
As traders assess DOT's price movement within the descending channel, the focus remains on whether a breakout will materialize. The next few trading sessions could provide further clarity on whether DOT is poised to reach the projected $9 target.
