Polkadot (DOT) has recently shown a spark of life, registering a 4.41% gain over the past week, a notable short-term performance amidst prevailing market fear and Bitcoin's volatility. This brief upward movement comes despite a prolonged bearish trend that has gripped DOT since March 2025, presenting a complex picture for traders and investors alike.
Navigating Polkadot's Multi-Timeframe Trends
A closer look at Polkadot's market behavior reveals a stark contrast between its long-term and short-term trends. On the weekly chart, DOT remains firmly entrenched in a bearish structure, characterized by continuous selling pressure and bearish momentum, with the potential to revisit a supply zone around $2.5. This overarching bearish sentiment has persisted since early 2025. However, a significant shift has been observed on the 4-hour chart over the last week, indicating a bullish trend. This is marked by structural breaks above previous lower highs and a surge in bullish momentum and accumulation, suggesting the current uptrend could push DOT towards the $2 psychological resistance level, and potentially even the weekly supply zone at $2.5.
Opportunities and Risks for Savvy Traders
While the short-term bullish momentum offers attractive opportunities for agile traders, the broader market context calls for caution. The prevailing fear across the crypto market and Bitcoin's struggles against key resistance zones mean that altcoins like Polkadot face an uphill battle for sustained demand. Short-term traders might capitalize on the current bounce, targeting the $2.0-$2.1 area where significant short liquidation leverage exists, making it an attractive price target. However, risk-averse individuals are advised to remain sidelined due to the dominant bearish higher timeframe trend. Investors, especially, should be wary of buying into this bounce, as the overarching market sentiment remains fearful and demand for DOT is still light, with a drop below $1.82 invalidating any long setups.
