Polkadot Tests Critical $3.75 Support Level as Range-Bound Pattern Emerges

Polkadot (DOT) is retesting its $3.75 support zone, a crucial level not seen since October 2023, as technical indicators suggest the formation of a broader range-bound structure. Currently trading near historic lows, this key price level represents a significant structural support area where buyer activity may potentially reverse the downtrend.

The $3.75 mark holds particular importance as it aligns with multiple technical factors: serving as a high time frame support level, matching the value area low, and coinciding with the point of control from October 2023's price action. This triple confluence creates a strong zone of interest where historical trend reversals have previously occurred.

Market structure remains bearish for now, characterized by consistent lower highs and lower lows. For a confirmed reversal scenario, DOT would need to decisively reclaim the $3.75 support, surpass the local high, and establish a higher low - signaling a potential shift in momentum. Such confirmation could pave the way for a move toward the $7.67 resistance level at the upper boundary of the emerging trading range.

Analysts note the current price action may represent a deviation below fair value, particularly if the asset shows quick recovery with strong volume. This could indicate a potential bear trap at range lows, possibly triggering a sharp rebound fueled by short covering and new accumulation.

The coming sessions will be critical for determining whether DOT can establish solid footing above $3.75 and break its current bearish structure. Traders are closely monitoring for technical confirmation before anticipating any sustained upward movement.