- Polkadot’s breakout from the falling wedge signals a potential trend reversal, with $5 as key resistance.
- Whale activity demonstrates confidence, while balanced selloffs suggest cautious optimism ahead of a potential rally.
With upcoming Polkadot (DOT) upgrades such as JAM v1.0 for decentralized computing, a 64-bit PVM upgrade, and Polkadot 2.0 planned for 2025, these developments are increasingly expected to can lead to a recovery phase.
POINT) was trading at $4.49, up 1.74% at press time. However, the bigger question remains whether this breakout can persist and lead to a broader trend reversal.
DOT Market Overview
Polkadot saw an impressive increase in trading volume, up 58.26% to $139.24 million.
This increase in volume reflects growing interest, likely driven by excitement over the network’s technological advances.
Additionally, Polkadot’s market capitalization increased by 1.78%, reaching $6.78 billion. Therefore, the market is showing obvious optimism, but the next steps in price action will confirm whether this breakout holds.
Is $5 the next stop?
The breakout of the descending wedge, a bullish technical pattern, indicates the potential end of Polkadot’s extended downtrend. Priced at $4.49 at press time, DOT faces the next key hurdle: the $5.00 resistance level.
If Polkadot manages to surpass and maintain this level, a new bull cycle could be triggered. However, failure to do so could lead to consolidation or even a price reversal.
On the technical side, the RSI currently stands at 56.53, suggesting neutral to bullish momentum. Additionally, the MACD is showing a bullish crossover, indicating that momentum could support further upward movement.
Source: TradingView
Do the big players support the DOT?
Whale activity reflects strong market sentiment. 57.55% Much of the stablecoin supply is controlled by whales holding more than $5 million, showing that large investors retain confidence in DOT’s long-term prospects.
This suggests bullish sentiment from influential holders, likely supporting a sustainable rally.
Liquidation analysis: shorts at risk?
Polkadot’s liquidation chart reveals that $45.96k of shorts were recently liquidated, compared to $54.47k of longs. This balanced liquidation activity suggests a sense of caution in the market.
However, if the price rises above $5.00, we could see an increase in short liquidations, further fueling the uptrend.
Source: Coinglass
Read Polkadot (DOT) Price Prediction 2024-2025
Will Polkadot break the $5 barrier?
Polkadot’s breakout from its descending wedge, combined with increased trading volume and strong whale activity, signals a potential trend reversal.
With the upcoming upgrades adding to the bullish momentum, DOT is well-positioned to break the $5.00 resistance level. If it succeeds, a sustained upward trend could ensue.
