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Polkadot (DOT) is showing early signs of a potential bullish reversal, with technical and on-chain indicators aligning in favor of upward momentum. At press time, DOT was trading at $3.66—up 4.93% on the day—marking a notable bounce that brings the altcoin directly beneath a key resistance level at $3.82.
This $3.82 zone has long served as a stubborn barrier, rejecting previous attempts at a breakout. However, a decisive flip of this resistance into support could open the door for a rally toward $4.78. Conversely, failure to break through may see DOT retreat to $3.27, maintaining its descending wedge structure and postponing any sustained reversal.
On the technical front, DOT’s 4-hour chart recently triggered a TD Sequential buy signal, coinciding with a test of the descending wedge resistance. More encouragingly, the 9-day moving average has crossed above the 21-day MA around $3.61—signaling a potential bullish crossover.
Momentum indicators are also turning favorable. The Directional Movement Index (DMI) reveals an ADX reading of 31.98, highlighting a strengthening trend. Although the -DI still leads the +DI, the narrowing gap suggests that bearish pressure is waning.
In derivatives markets, the mood is cautiously optimistic. DOT’s Long/Short Ratio stands at 1.0137, with 50.34% of traders positioned long—indicating a slight tilt toward bullish expectations, especially if $3.82 is breached.
Meanwhile, on-chain data adds further weight to the bullish case. According to Coinglass, a dense cluster of short positions between $3.70 and $3.83 could be liquidated if DOT breaks higher, potentially triggering a cascade of upward momentum. Spot exchange flows on April 17th showed $4.56 million in outflows versus $4.42 million in inflows—signaling potential accumulation.
While DOT has yet to reclaim full bullish control, the combination of technical strength, sentiment shift, and declining exchange supply suggests a breakout may be imminent. Should DOT close above $3.82, bulls may finally seize control, paving the way for the next leg toward $4.78.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Polkadot (DOT) Price Rally: Will Resistance at $5.16 Trigger a Reversal or a Breakout?
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
