Polkadot (DOT) Gains Momentum — What's Next?

Polkadot (DOT) has started August on a stronger footing, gaining almost 15% and showing early signs that buyers may be regaining control. The recent move above a key daily resistance zone has improved the short-term outlook, with traders now watching to see whether DOT can hold this reclaimed area and extend the recovery toward higher price levels.

Polkadot (DOT) technical analysis

DOTUSD - 1 Day Time Frame

Since the beginning of August, DOT has gained almost 15%, reflecting a clear improvement in short-term bullish momentum. More importantly, price has closed above the key daily resistance zone between $0.77 and $0.81. Following this move, the former resistance area can now be viewed as a potential support zone, highlighted in blue on the attached chart.

The reclaim of this area is the main technical factor supporting the current long-side scenario. When price closes above an important resistance zone and subsequently begins to hold above it, it can suggest that buyers are gaining greater control of the structure.

Based on this development, a long position could be considered as long as DOT continues to respect the newly established support zone. From a risk-management perspective, a protective Stop Loss could be placed around $0.74, below the reclaimed structure. A move below this level may weaken the bullish setup and suggest that the breakout above resistance has failed.

Polkadot (DOT) price target

If bullish momentum remains active, the potential Take Profit levels are located at the nearest Buy-Side Liquidity zones around $0.91, $1.05, $1.21, and $1.44. These levels represent logical upside objectives, as price could continue seeking liquidity resting above previous highs after reclaiming an important daily resistance zone.

For now, DOT presents a constructive technical picture following the August rebound and the daily close above the former resistance zone between $0.77 and $0.81. As long as price remains above this support area and the risk level near $0.74 holds, the focus could remain on further upside toward the Buy-Side Liquidity zones at $0.91, $1.05, $1.21, and $1.44.

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