Polkadot (DOT): Navigating Short-Term Gains Amid Long-Term Bearish Trends

Introduction to Polkadot’s Market Landscape

Polkadot (DOT) has been on a bearish trajectory since March 2025, yet it recently achieved a notable gain of 4.41% over the past week. Given the ongoing volatility surrounding Bitcoin (BTC) and the prevailing fear across the cryptocurrency market, this short-term performance is encouraging. Investors are keen to understand current trends to seize profitable opportunities in this fluctuating environment.

Analyzing Multi-Timeframe Trends

At the time of reporting, Polkadot’s weekly trend remained decidedly bearish. The bearish structure has been indicated by consistent breaks since September, with the overall swing structure continuing to trend downward since March. Key indicators, including the Accumulation/Distribution (A/D) indicator, have signaled sustained selling pressure, while the Awesome Oscillator underscores existing bearish momentum. An identified imbalance around the $2.5 level represents a possible supply zone that may be revisited before further significant bearish movement occurs in this timeframe.

Insights from the 4-Hour Chart

Contrarily, the 4-hour chart presents a glimmer of hope with a recent bullish trend shift. Over the past week, two critical bullish structural breaks were noted as lower highs at $1.75 and $1.85 were exceeded. The A/D indicator has been rising, signifying an increase in buying pressure, and the Awesome Oscillator reflects bullish momentum in recent days. If this current H4 uptrend continues, it may pave the way for DOT’s price to reach the important psychological resistance level of $2 and potentially the $2.5 weekly supply zone.

Risks for Polkadot Bulls

Despite the short-term bullish signals, challenges lay ahead for DOT bulls. The substantial $90k resistance zone has recently posed a formidable barrier for Bitcoin bulls, and the cautious sentiment among BTC traders could hinder altcoins like Polkadot from achieving significant rallies. While the H4 and lower timeframe indicators suggest bullish conditions, it’s crucial for long-term investors to remain vigilant, as the overarching trend continues to affirm bearish sentiments.

Trading Strategies: Profit Potential and Caution

For risk-averse traders, exercising caution is advisable as the higher timeframe trend still leans bearish. Nonetheless, the current H4 trend presents an attractive target around the $2.11 mark. This potential peak aligns with the 30-day liquidation map, which indicates a strong propensity for short liquidations to the north. Traders might consider taking profits in the $2.0-$2.1 region while maintaining awareness that any drop below $1.82 would invalidate long setups.

Conclusion: Weighing Opportunities Against Market Sentiment

In summary, Polkadot’s recent price recovery offers a lucrative opportunity for traders focusing on short-term gains. However, it’s essential for investors to approach DOT with cautious optimism given the overall market sentiment, which remains fear-driven and characterized by minimal demand. Staying informed and adaptable is crucial for maximizing potential profits while navigating the complexities of the cryptocurrency landscape.

Disclaimer: This article is intended for informational purposes only and does not constitute financial, investment, trading, or other types of advice. Always conduct your research before making investment decisions.