Key Indicator Just Flashed a “Buy Signal” for Polkadot – Could DOT Price Be Ready to Rebound?

Crypto expert Ali just shared an interesting update on Polkadot (DOT), and it's got some traders paying closer attention.

Crypto traders often search for key technical signals that could offer an edge in making informed decisions. In this context, one indicator just flashed a “buy” setup for Polkadot (DOT), and it has caught the attention of several analysts.

According to crypto expert Ali, the TD Sequential indicator has just hit a “9” on the 4-hour chart. This level is often observed by TD Sequential fans, as it can sometimes foreshadow a shift in technical momentum.

As the chart shows, Polkadot price has been bouncing within a range after re-testing the $3.42 zone, a level that previously offered strong support. From the top, resistance is now seen at $3.75, an area where sellers have stepped in before.

At the moment, DOT price is approaching a key support at $3.51, a zone that could encourage buyers to intervene if the bears push lower.

“The 4-hour chart is showing a TD9 buy setup at a key fib level. If we get a bounce here, it could be setting up a nice move back up to the 3.75 zone.”

According to the crypto analyst, the buildup of the TD Sequential 9 is also noteworthy, as it gradually developed over several candles. Typically, a rapid formation of the count can lead to faster price changes.

However, if this setup fizzles out, it might indicate that Polkadot price is heading lower. In this scenario, the next support level to watch would be at $3.42, an area that previously halted the decline.

Polkadot Price Trend and Consolidation Behavior

DOT has been on a clear downward path, forming lower highs and lower lows in recent sessions. However, recent candles show smaller price movement and reduced volatility, which could point to consolidation around current levels. This often precedes a breakout in either direction.

Polkadot price action near the $3.51 level appears to be forming a base. A small bounce attempt is visible, though not yet confirmed by volume or a break of structure. If the buying setup leads to increased interest, short-term resistance levels around $3.60-$3.65 may come into focus.

Key Levels and Chart Structure

A descending trendline on the chart continues to act as resistance, capping each recovery attempt. For a shift in trend, DOT price would need to close above this line with strong follow-through. Until then, the market remains within a bearish structure.

Support at $3.51 has held so far, but a clear close below it could open the path toward $3.42, the next possible demand zone. Traders are monitoring both zones closely, as these levels could determine short-term direction.

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While the TD Sequential signal offers a potential catalyst for change, confirmation will depend on how the next few candles close. The signal alone is not a guarantee, but it can serve as an early alert for technical traders.

Price behavior near the $3.51 level, interaction with the descending trendline, and volume levels will be closely observed. A move through the trendline could attract momentum traders, while a drop below support may trigger further selling pressure.

As of the latest data, DOT price is trading at $3.52 with muted intraday movement. Traders and analysts are focused on whether this buy setup will hold or fade under resistance.