Polkadot (DOT) could retest its all-time high or reverse and revisit recent lows.
Polkadot (DOT) is trading above a key support level, leaving the price vulnerable to a decisive break in either direction.
At the time of writing, the DOT/USD pair is trading around $36 and is following an uptrend. However, the cryptocurrency has struggled to decisively break and hold above the 20-day EMA (around $35.08) on the daily chart.
As a result, buyers are likely to pay close attention to price action around the $35 level — whether it holds as support or is breached to the downside.
DOT Price Outlook
On the daily chart, the Relative Strength Index (RSI) sits above 50, indicating that bulls currently have the upper hand.
The formation of a symmetrical triangle suggests DOT is positioned for a breakout to the upside if the pattern’s continuation bias remains intact. In that case, buyers could target a move toward the triangle’s descending trendline. This scenario would likely require fresh buying above the resistance area near $38.
Should price clear these hurdles, increased buying pressure could push DOT past its previous all-time high of roughly $42, set on 20 February 2021. A successful breakout and continuation could put bulls in position to aim for $52 — a potential supply zone derived from projecting the triangle’s height.
Conversely, DOT/USD also faces the risk of a meaningful decline toward the recent lows near $20.
This bearish scenario would gain traction if bulls fail to hold the 20-day EMA and price slides back toward the ascending trendline. A symmetrical triangle can act as a continuation pattern, but it can also precede trend reversals when momentum shifts.
The MACD remains in positive territory but could warn of waning momentum if it crosses below its signal line. A strengthening bearish momentum might follow if bulls lose control and DOT/USD drops toward $30.
A negative RSI divergence — and a possible move back under 50 — would increase the likelihood of a decisive downside move. If bears push the price below the horizontal support around $28, the next significant target would be in the $20 area.