Polkadot (DOT) Technical Analysis – May 6, 2025
Polkadot (DOT) is reacting to key historical support levels, including the swing lows from October 2023, August, and November 2024. A marginally lower low has formed, but the bounce remains weak, keeping the larger trend bearish for now.
Macro Outlook
The long-term structure suggests a corrective rally rather than a bullish reversal.
A potential wave 2 corrective rally could still develop, but upside may be limited to the $11 region.
Major resistance lies between $5.31 – $8.84; a break above this range would be needed to shift the macro trend.
Short-Term View
Current structure shows a possible ABC pattern forming:
A wave up completed.
B wave pullback in progress, possibly extending lower.
C wave rally possible next if support holds.
Support zone extends down to $3.42.
A break above $4.09 would be the first signal of a short-term low and potential bullish continuation.
Trade Setup
Entry Zone: $3.80 – $3.90 (look for bullish reaction)
Stop Loss: Below $3.42
Short-Term Target: $4.80 (swing high)
Extended Target: $5.30 – $5.80 (resistance zone)
Trend Bias: Short-term bullish potential inside a larger corrective pattern. Caution warranted until a strong breakout occurs.
