DOT Price Faces Resistance at $4.20 as Bulls Seek Breakout
Polkadot (DOT) has been trading in a tight consolidation range after breaking out from its previous descending channel pattern, signaling a potential shift in trend direction. The altcoin is currently priced at $3.94, slightly down by 0.20% in the last 4 hours, as per Binance data.
On the 4-hour timeframe, DOT previously broke above a prolonged downtrend channel, which dominated the market through June and early July. Following this breakout, the price surged toward $4.60 but failed to sustain momentum, resulting in multiple rejections near the $4.20-$4.40 resistance zone highlighted on the chart.
Currently, DOT is holding above the major demand zone between $3.60 and $3.75, which has acted as a strong support level over the past month. “The price structure suggests accumulation around $3.80-$3.90, but a breakout above $4.20 is crucial for bullish confirmation,” noted BITX market analyst.
Volume has shown a decline compared to early August, indicating lower participation from both buyers and sellers. BITX Analysts believe the next major move will likely occur when DOT either breaks above $4.20 resistance or falls below $3.60 support.
Key Levels to Watch
- Immediate Resistance: $4.20 – $4.40
- Support Zone: $3.60 – $3.75
- Breakout Target: $4.50 and beyond
For now, DOT remains in a sideways structure, and traders are closely monitoring these levels for a decisive breakout or breakdown.
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.