Polkadot bounces from $4.84 support level to break a descending wedge with potential upside.
Resistance levels for DOT occur at $5.17, a move above this level could create further bullish momentum.
DOT/BTC pair increases by 2.1%, despite USD price stuck in a tight range.
Polkadot (DOT) is exhibiting early indications of a possible breakout after a strong rebound from a firmly established support zone. At the time of writing, DOT trades at approximately $5.11, reflecting a 1.2% intraday decline. Despite this, the recent price action indicates a change in short-term sentiment with the token breaking out of its pattern and heading for a major resistance point.
DOT Breaks Wedge Pattern After Holding $4.84 Support
In the last few weeks, DOT has developed an impressive configuration of lower highs in a declining wedge. The token found strong support around the $4.84 mark, a level that has consistently served as a floor during market pullbacks. A bullish engulfing breakout was seen following DOT touch upon this region once again in early May, which coincided with its previous behavior when a strong spike took place once it stayed within the same range in late 2024.
https://twitter.com/THEFLASHTRADING/status/1922174516307898589
Currently, DOT is trading between $4.84 and $5.17, with the $5.17 resistance acting as the next immediate barrier. The successful defense near the support zone has provided bulls with an opportunity to re-enter, thrusting the price above the descending trendline. This technical development mirrors a similar breakout that preceded a significant rally in November 2024.
Volume and Market Structure
Market structure is neutral to moderately bullish as DOT tries to stay above the previous wedge. Volumes have strengthened in the breakout from the $4.84 zone, with renewed interest. However for further progress to higher levels, DOT will require to maintain momentum and break through the $5.17 resistance. Such an action may lead to another retest of the lower range.
Polkadot Eyes $5.17 Breakout After BTC Pair Gains
In its Bitcoin pair, DOT is trading at 0.00004912 BTC, which represents a 2.1% increase. This divergence implies that there is some strength against Bitcoin in the short-term while general USD price dynamics still show subdued levels.
The current price range will probably play a vital role in shaping the token’s next steps. Technical patterns suggest that DOT might be gearing up for a bigger push as long as the markets are stable. The $5.17 level is now under all eyes, which if cleared with volume could open the way for a broader rally.
