Polkadot (DOT) Breaks Key Resistance With 4% Rally
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Rising volume and bullish breakout signal potential short-term trend reversal
Polkadot (DOT) surged nearly 4% in intraday trading as it broke out of a descending channel pattern that had held for over a month. The breakout occurred on the 4-hour chart, confirming a potential trend reversal amid heightened trading activity and renewed investor confidence.
After weeks of downward pressure, DOT found strong support around the $3.50 zone, where a bullish demand block has consistently absorbed selling pressure. This level held firm throughout July, with price forming higher lows—a technical sign of accumulation.
The breakout above $3.74, a resistance level tested multiple times in recent sessions, was accompanied by a significant volume spike, roughly triple the average, pointing toward institutional participation or algorithmic buy triggers. The price briefly touched $3.80 before retracing slightly.
“A breakout with rising volume confirms strength. The fact that DOT held above support and broke resistance on strong momentum is a bullish development,” noted a crypto market analyst monitoring the move.
Technical indicators also favor bulls. The clean break from the falling wedge pattern suggests a shift in short-term sentiment. Previous rejections from the $3.75–$3.80 area had capped upside attempts, but this time, buyers overpowered the supply zone.
Looking forward, the next key resistance lies near the $4.10–$4.20 range, where DOT faced heavy selling earlier in July. If bulls maintain control, a retest of this region could unfold over the coming days.
“This breakout is more than just technical—it reflects shifting market confidence after weeks of bearish exhaustion,”BITX analyst said.
The rising volume, break of structure, and price closing above previous resistance combine for a strong technical setup.
However, traders should remain cautious of false breakouts, especially in volatile altcoin markets. A daily close above $3.80 would further validate the move and increase the odds of continuation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
