Polkadot (DOT) has recently broken out of a well-established horizontal channel on the 4-hour chart on Thursday, February 26.
According to the crypto analyst Alpha Crypto Signal, after weeks of consolidation between defined support and resistance, buyers have stepped in with strong momentum, pushing the price above the upper boundary. This shift indicates a potential trend reversal, catching the market’s attention.
Source: Alpha Crypto Signal X Post
Rather than rushing into the breakout, traders are advised to wait for a retest of the former resistance now acting as support.
A clean retest would confirm the breakout’s legitimacy and provide a better entry point. This cautious approach allows traders to avoid jumping into a move that may not hold long-term.
Also Read: Polkadot (DOT) Returns to Trading Range as Bearish Breakdown Loses Strength
DOT Support Retest Could Signal Strong Opportunity
If the price holds above this new support and continues to show bullish structure, it could present an attractive long opportunity.
With clear risk management in place, traders can better position themselves for a potentially profitable trade. Confirmation of support is key for those looking to enter the market confidently.
The coming days will be crucial for the price of DOT, as its movements will indicate whether the breakout will continue with momentum.
Traders should be cautious as the price reacts during the retest phase. The price reaction might determine whether the breakout is the start of a new rally.
Polkadot (DOT) Technicals Point to Shift in Momentum
According to TradingView, as of Thursday, February 26, the price for the DOT asset recently experienced a breakout with an impulsive price move upwards from the 1.26-1.28 price range to significantly higher price levels above 1.55.
The price has now reclaimed the 20 EMA, 50 EMA, 100 EMA, and 200 EMA. The price is currently trading at the 1.58 price level, slightly lower than the recent price highs at the 1.65-1.70 price range.
Source: TradingView
The momentum also shows sustained bullish pressure with the MACD bullish crossover and expanding histogram bars. The vertical nature of the move may suggest a short-term correction or relief period.
Holding above 1.50 will maintain the bullish structure, but if it fails to hold the 20 EMA support, it may test the 1.39-1.40 EMA area below.
Also Read: Polkadot (DOT) Falls to $1.50 As Polkadot Enters Oversold Zone – Bounce Possible