Can Polkadot Price Drop To $3.74 Spark A Rally To ATH In 2025?

Polkadot’s (DOT) price action showed significant price movements and resistance levels that indicate potential future behaviors.

Currently, DOT is poised to retest the $3.74 support level, which has historically acted as a critical juncture for price direction.

What are Potential DOT Targets for 2025?

From July to October 2023, DOT rallied significantly, peaking just below $7 before encountering resistance and retracing sharply.

Since then, it has seen fluctuating declines and recoveries, defining a broad descending channel marked by intermittent peaks and troughs.

The $3.74 level appears as a foundational support that was briefly broken in April 2024 but quickly reclaimed. This level could again serve as a platform for a potential rally or further decline.

The secondary resistance at around $6 to $6.40, observed in mid-2024, has capped upward movements, suggesting a strong selling pressure zone.

DOT/USD 3-day chart | Source: Ali/X

If PolkaDOT price fails to maintain the $3.74 support, there’s a risk it could drop towards lower historical supports near $3.10.

Conversely, a strong rebound from this level might affirm its resilience, potentially catalyzing a rally towards the $6 mark.

An effective hold above $3.74, coupled with favorable market conditions, might spark buyer confidence, driving a rally towards its all-time-high of $55.

However, breaking below could reinforce bearish sentiments, leading to further declines.

Polkadot Price on Bull market Support Bands

Further analysis of Polkadot price behavior relative to the Bull Market Support Bands (BMSB) provided an unusual insight into its market stance.

The analysis comprised of the 20-week Simple Moving Average (SMA) and 21-week Exponential Moving Average (EMA).

Currently, DOT is trading below these critical indicators, suggesting a bearish phase in the market.

The 20W SMA and the 21W EMA served as important psychological and technical thresholds that differentiate bullish trends from bearish ones.

Polkadot price recently dipped below both averages, indicating a potential trend reversal to bearish or at least a consolidation phase.

DOT peaked near $55 in May ’21 and again showed significant activity around this level in January ’22 and May ’22, each time retreating below the BMSB shortly after testing or surpassing it.

Currently, the 20W SMA stood around $6.21, and the 21W EMA was at $5.97. With DOT’s current price around $4.76, this places it well beneath these averages, which now act as resistance levels.

DOT Bull Market Support Band | Source: IntoTheCryptoverse

Future Outlook

This position below the support bands often signals a lack of bullish momentum and can deter new buying interest, suggesting that unless DOT can reclaim these levels, further downward pressure or sideways trading might continue.

Conversely, should Polkadot price break above these averages, it would signal a strong buying momentum potentially leading to a sustained upward trend.

Trading below these support bands could reduce investor confidence in DOT’s immediate bullish prospects.

However, if external market conditions improve or if there’s positive project-specific news, the price might rapidly ascend to test these averages again.

A decisive closure above the BMSB to confirm a bullish reversal or continued resistance at these levels might solidify the bearish scenario.

The dynamic between these averages and Polkadot price will critically define it’s market sentiment in the coming weeks.