Polkadot(DOT) at a Decision Point: A Bounce from Here Could Send It to $11.63 | by Samuel O. Adediran | The Capital | Feb, 2025
The price of Polkadot (DOT) is currently trading at $6.32, lingering near a key support level of $5.48 distinguished by the red line on the chart. As indicated by Crypto Analyst MMatters22596 on X, if DOT’s price closes below this level in the coming days, it could prolong its downward move toward $5.16 (the 0.78 Fibonacci level) or even $4.56.
The descending parallel channel suggests that DOT is still in a corrective wave, with a potential Wave 2 bottom forming within the blue range. A failure to reclaim higher levels could mean further downside before a potential bullish reversal.
If the red line holds as support, DOT’s price could be gearing up for a major breakout. The next key resistance sits at $7.65, which aligns with the 50% Fibonacci retracement level. A precise move above this range would confirm a shift in momentum, setting up a potential push toward the next major resistance at $7.99.
Beyond this, the green target zone at $11.63 predicts a long-term bullish scenario, with the chart indicating a Wave 3 expansion if momentum builds. The dashed green trendline signifies an explosive move if bulls reclaim lost ground.
According to the Elliott Wave count on the chart, there might be an ABC correction where the last section is close to ending, either Wave C or Wave Y. If buyers enter at this point, DOT might experience a piercing bullish impulse which would contradict the bearish structure we are currently in.
On the other hand, if sellers successfully navigate DOT under the $5.48 mark, the bearish wave can move down into lower retracement zones while looking for true support. The coming few days will show if the price of DOT is set for a major breakout or another leg downward since volume is still low.
