Polkadot is undergoing a short-term correction but continues to hold critical support at $3.75. This support could be a launchpad for further growth.
Current Price Situation of Polkadot
Polkadot ([DOT](https://crypto.news/price/polkadot/)) has recently entered a corrective phase; however, it is still trading around a high-volume level that provides strong support. The current market setup suggests that holding this level could lead to a renewed rally towards key resistance levels.
Key Resistance and Support Levels
* Key Support: $3.75, aligned with higher timeframe structures. * First Major Resistance: $5.09, coinciding with the local high. * Next Higher Resistance: $7.67, considering the overall downtrend.
Price Action Forecasts
If the $3.75 support is maintained and the $5.09 level is reclaimed with increasing buying volume, the probability of a rally towards $7.67 increases significantly. Conversely, failure to hold $3.75 could lead to deeper retracement.
The support at $3.75 plays a crucial role in maintaining the bullish structure for Polkadot. Further movement will depend on successfully breaking the resistance level of $5.09 and the return of buying volumes.
