Polkadot (DOT) Technical Market Update – May 2025
Overview: DOT is currently pushing toward a critical resistance area. The move appears corrective, forming a classic ABC pattern, with potential for short-term gains but limited expectations for all-time highs in the current wave structure.
Chart Structure:
Price movement from the Dec 2024 high has formed a 5-wave decline, likely completing Wave A.
The current move is interpreted as an ABC corrective rally, possibly completing Wave B.
Resistance is forming around $5.16 to $5.30, with higher resistance at $7.15 to $8.84.
Short-Term Price Structure:
Wave A likely topped on April 25, followed by a B wave pullback, and currently rallying in Wave C.
If price reaches $5.16 or higher, the ABC move will be confirmed in size and structure.
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Trade Setup (Short-Term Swing):
Entry: $4.55 – $4.75 (near current consolidation, above micro support)
Micro Support Zone: $4.21 – $4.52 (valid as long as price stays above this zone)
Targets:
Target 1: $5.16 (initial resistance)
Target 2: $5.30 (main resistance zone)
Target 3: $5.80 (if breakout continues)
Stop Loss: $4.18 (below micro support)
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Strategy Notes:
Watch for price reaction at $5.16–$5.30; rejection may signal end of corrective wave.
A higher low in the next pullback could offer a second entry.
Longer-term bullish scenario requires breakout above $7.15–$8.84, but that remains speculative for now.
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Conclusion: DOT is in a possible Wave C rally within a corrective structure. This provides short-term trading opportunities, but caution is advised near resistance. Stick to the defined risk levels and follow price action closely.
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