According to Chanur Sessur in a recent post on X, Polka Dot (DOT) is consistently traded within the well-defined black channels of the monthly chart. This channel is formed by established horizontal support and resistance levels that have been tested many times over the past four to five years.
The range ranges from $4 at the bottom to about $12 at the top, effectively boxed with dot price action, forming a long-term lateral market structure. Beyond the last five years, a clear move, particularly with a strong volume, could mark the beginning of a new trend, either at price discovery or deeper levels of support.
Analyzing price actions within a channel
In a recent analysis, Cessur highlighted that the green channels shown on the Polkadot chart represent downward trends that have been in place for nearly four years. This trend consistently guides a broader market structure and serves as a long-term resistance. However, he said that if DOT breaks over this channel, it could set a major trend reversal stage in the coming months.
He also paid attention to the short-term outlook for dots, where the red falling channels in the weekly time frame were just violated upside down. According to Cessur, the development is a sign of a potential bullish continuation, and is to start increasing DOT as one of the Altcoins.
Analysts concluded that if assets follow a multi-year pattern ranging from $4 to $12, another climb towards the top of this range is likely. Most importantly, I realized that if a weekly candle exceeds $4.70, the chances of seeing a quick move towards $10 can be significantly increased.
Bear Case: Losing $4 can cause polka dots to be sent to the lowest ever
Polkadot’s bear case revolves around a $4 support level that is crucial to maintaining the Altcoin price structure. If the dot loses the $4 mark, it may indicate a deeper bearish move. This will negate recent bullish hopes and increase the chances of further decline as market sentiment shifts to a more risk-averse attitude.
Such a drop suggests that the upward momentum observed in recent months could be a false gathering, with dot prices unable to maintain a position above the main support level. Failing to exceed $4 could lead to increased sales pressure, especially if broader market conditions worsen or confidence in Polka Dot’s long-term outlook.
Furthermore, this move below critical support will increase the likelihood of retesting history lows, which will lead to bearish developments that are important for tokens. In this scenario, perseverance and strategic re-entry points become important factors for short- and long-term holders.
