TLDR:
- Polkadot (DOT) breaks out of a two-year falling wedge, signaling possible long-term trend reversal.
- Price has reclaimed $3.40 and $3.45, turning resistance zones into new support levels.
- DOT’s volume and momentum are rising, indicating renewed investor confidence.
- Traders are targeting $10 as DOT eyes extended rally with upgrades expected in 2025.
Polkadot’s native token, DOT, has broken out of a prolonged downtrend, signaling renewed strength in the crypto market.
After two years of slow decline and consolidation, DOT has finally moved past critical resistance levels. The recent surge comes as market momentum builds and upcoming protocol upgrades add to investor optimism.
The shift could mark a potential trend reversal, with traders eyeing a return to higher price levels. As DOT holds its ground above newly formed support, speculation around a sustained rally continues to grow.
Polkadot Falling Wedge Breakout Sparks Interest
Crypto trader Crypto Winkle noted that DOT has broken out of a two-year-long falling wedge, often considered a reversal pattern.
The daily chart shows a clear breakout, supported by increasing trading volumes and strong price action. After months of sideways trading, this breakout marks a decisive move, pushing the asset out of its multi-month stagnation.
$DOT just broke out of a 2-year-long falling wedge and that’s not something you ignore.
It’s been stuck in a sideways chop for months, but now it’s showing serious signs of strength. Price reclaimed key resistance levels at $3.40 and $3.45, and is holding well above $3.70… pic.twitter.com/DNq7ulRSsb
— Crypto Winkle (@CryptoWinkle) July 8, 2025
The falling wedge had trapped DOT within a narrowing range, delaying any meaningful upside. Now, with the pattern invalidated, traders are watching closely for signs of follow-through in the coming sessions.
DOT has reclaimed the $3.40 and $3.45 resistance levels, both of which had previously acted as firm ceilings. The price has since settled above $3.70, reinforcing this area as a new support level. This change in structure has increased confidence among technical analysts tracking reversal patterns across major cryptocurrencies.
According to current market data, DOT trades at $3.47 with a 24-hour volume exceeding $159 million. The asset has gained over 3.7% in the past day and more than 4% over the last week.
DOT Price Momentum and Market Behavior
The price breakout was accompanied by a noticeable uptick in momentum, reflecting a shift in market sentiment.
The sharp move suggests traders are rotating into DOT in anticipation of stronger gains ahead. This move could set the stage for a broader trend reversal if momentum continues to build.
Besides price movement, the broader crypto environment has also seen similar formations play out in other tokens, fueling optimism across altcoin markets.
Traders are now setting their sights on a potential rally back toward the $10 level. While this would represent over 150% in gains from DOT’s current price, market participants view it as a realistic target if the current strength holds.
Planned network upgrades for Polkadot in 2025 may act as a catalyst for further growth, supporting the technical case for a sustained uptrend.
The post Polkadot Breaks Two-Year Trend as DOT Reclaims Key Price Levels appeared first on Blockonomi.
Source: https://blockonomi.com/polkadot-breaks-two-year-trend-as-dot-reclaims-key-price-levels/