Polkadot: $4.5 becomes an important level for DOT, here’s why
Polkadot (DOT) is poised for a breakout as whales reposition and trading activity surges. Technical indicators show that DOT is forming a bullish falling wedge formation, indicating a potential price reversal.
Currently, the key resistance is $4.50, a break above this level could confirm the bullish move and target around $10, a gain of nearly 129.73%. Meanwhile, support at $3.911 is crucial and a fall below could dampen the positive outlook.
Trading data showed a significant increase in market activity, with trading volume increasing by 29.77% to $241.4 million and open interest increasing by 11.29%. These changes often signal price volatility to come.
The behavior of large holders is also important, with data showing whales accumulating heavily during price declines in preparation for entry at lower levels. However, the recent decline in whale holdings may reflect caution in the market.
To sum up, Polkadot is currently at a critical juncture, with technical patterns, trading volume, and market activity all suggesting major changes are coming.
