Several #altcoins have experienced losses this week due to growing geopolitical tensions, and Polkadot (#DOT/ ) is no exception. The market correction pulled DOT’s price down to $4.04, representing a drop of more than 14% in just three days.

In such situations, it’s useful to take a step back and assess key network indicators and trader sentiment, as analyzed by experts in the field.

Polkadot On-Chain Activity

One of the key on-chain metrics tracking network activity is the number of daily active users and new users joining the ecosystem. While the number of new accounts on Polkadot has remained relatively stable since May of last year, active users have increased by more than 25%.

The amount of DOT transferred daily during this period has also seen a significant increase, indicating that the network is processing larger volumes of transactions.

Is a DOT Breakthrough Coming – Are Investors Ready?

Some analyses suggest that DOT may be on the verge of a significant breakthrough. It appears that the altcoin is nearing the conclusion of its accumulation phase and could soon break out of its long-standing descending wedge pattern.

Analysts highlight the movements of large investors, indicating that DOT is ready to follow this trend. Key resistance levels are projected at $11.83, $18.41, $26.30, and $37.53.

Another market observer, known as Lucky, also points to a similar #BullishOutlook📈 for DOT in his latest technical analysis. He stated that the asset is nearing the end of its year-long accumulation phase, which could prompt DOT to "take off" soon.

An Optimistic Scenario Based on Historical Data

According to the latest analysis by investment firm TradingShot, DOT may be on track for a significant price surge, potentially reaching $200 by the end of 2025. The analysis suggests that Polkadot is following a pattern similar to the Ethereum Classic (#etc ) cycle from 2018-2021.

As shown in the weekly chart, both assets exhibit nearly identical RSI sequences. Lower highs and double tops lead to a bear market, followed by an RSI bottom that triggers a breakout above the weekly MA50 and 0.5 Fibonacci retracement.

Currently, Polkadot’s RSI hovers around 40.00, a critical level that marked the start of a parabolic rally in #EthereumClassic . If Polkadot mirrors this cycle, it could aggressively climb toward the 1.5 Fibonacci extension and reach $200 by the end of 2025.