Polkadot Holds $3.74 Support As $3.87 Breakout Could Open Path to $0.45

Polkadot is narrowing strongly between $3.74 support and $3.87 resistance, which indicates accumulation ahead of a possible breakout.

Multiple resistance tests at $3.87 indicate an increasing pressure in the market and a break implies the potential for strong upward momentum.

The DOT remains strong support despite a 7-day decline and the token is set up for a potential reversal.

Polkadot (DOT) has been demonstrating strength as it tests a significant resistance level, suggesting a breakout can be near in the future. The cryptocurrency currently trades for $3.83, down 5.9% in the past seven days. Although DOT has seen a minor retracement downward, it has a clean horizontal support around $3.74 with resistance at $3.87. Observers are closely monitoring whether the token can surpass this resistance, which could pave the way for a potential rally toward $0.45 in the USDT pairing.

Polkadot Consolidates in Tight Range as Resistance Continues to Limit Upside

Over the past 24 hours, Polkadot has been trading within a fairly narrow range, indicating consolidation ahead of a potential upward move. The long-term support is still at $3.74, which is holding up for a stable floor of price action

On the contrary side, the resistance at $3.87 has consistently limited gains to establish a horizontal barrier that DOT must breach in order to confirm any upward strength. The gains from BTC and ETH pairs are nil, with DOT trading at 0.00003522 BTC and 0.0008576 ETH, indicating that its strength still primarily lies in the USDT market.

Price Action and Technical Formation

Recent three-day candlestick patterns show that Polkadot is in a tight range, showing that traders are starting to accumulate. Support levels remain consistent at $3.74, while the consolidation is seen as repeated tests of the $3.87 resistance level

Notably, the price has tested the resistance multiple times, indicating increased market interest. Technical charts suggest a successful breakout may result in a sharp move higher, with a potential target at $0.45 suggested by market analysis. This pattern indicates that Polkadot is positioning for a definitive directional movement.

Market Outlook and Next Steps

In the coming days, the market needs to shift its focus towards the breakdown of resistance as the key driver of further momentum. On a breakout, DOT can observe a series of higher highs supported by the underlying consolidation base that is already established

Traders are observing volume and price movements to confirm the extension of this trend. Also, underpinning stability at $3.74 ensures that pullbacks remain in check, and it is a solid foundation for further growth. Continual observation of the 24-hour trading range and resistance activity will continue to be essential to understanding market dynamics.