Polkadot (DOT) has broken through a key multi-week resistance, possibly signaling a trend change in the cryptocurrency market. The important level is now set at $3.75, where price is being tested as support.
Breakthrough of Resistance
Polkadot has finally overcome significant resistance that had persisted for several weeks. This breakout occurred on a weekly timeframe and holds considerable significance in terms of potential trend change. The key level to watch is $3.75, which previously served as resistance and is now being tested as support.
Technical Aspects
From a technical perspective, the breakout appears promising but will only be fully confirmed when the weekly candle closes and subsequent candles validate strength above $3.75. The current structure shows signs of a bullish engulfing pattern, which often leads to continued buying, especially when coupled with a reclaimed support level. However, there are concerns about trading volume, which remains below average.
Price Action Outlook
If DOT can hold several weekly closes above $3.75, this may confirm that recent lows were deviations, indicating a shift towards a new bullish phase. Conversely, failure to maintain this support could invalidate the breakout and lead DOT back to prior ranges.
In the current situation, Polkadot's success in maintaining the $3.75 level will define its future price movements. The next target for bulls could be the resistance area at $7 if the asset can solidify above the current support.
