Polkadot (DOT) Forms Bullish Reversal Pattern as DOT Eyes $2.40 Resistance
Polkadot (DOT) appears to be showing a possible bullish turn following a prolonged period of consolidation. Indicators for a potential market shift include the formation of an inverse head & shoulders pattern, a typical signal for a market shift.
Despite recent market doubts, a number of indicators suggest that DOT may be gearing up for a stronger move in 2026.
At the time of writing, Polkadot (DOT) is trading at $1.90, with a 24-hour trading volume of $255.13 million and a market capitalization of approximately $3.14 billion, according to CoinMarketCap. The token has increased 0.78% over the last 24 hours, reflecting continued sideways movement after recent volatility.
Polkadot Tests Critical Technical Levels
Analysts monitoring the market believe that DOT may be entering into a stage of stabilization. Crypto analyst CryptoPulse highlighted that the daily chart shows the bearish momentum is slowing down since the price is consolidating without creating new low points.
Moreover, Crypto pulse have also observed that DOT is potentially developing the right shoulder of an inverse head-and-shoulders formation. Should this be the case, then the critical neckline resistance is set close to $2.40.
A successful breakout past this resistance could indicate a resumption of bullish price action. But if a close below $1.85 is realized, then this formation will be negated.
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Polkadot Eyes Long-Term Recovery
Additional observations shared by SubWallet are that, notwithstanding the current sentiment trend, there are underlying trends in the data that are actually quite constructive.
According to the AI analysis, there are historical trends that suggest that a time of reduced sentiment, but stable underlying fundamentals, can often precede a recovery phase.
As these dynamics come into play, Polkadot is being seen as a possible “quiet sleeper” as the market moves into 2026. Investors will be waiting to see if DOT can hold its current level of support and make a move towards higher levels of resistance.
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