Polkadot Bulls Test "Home" Range as DOT Revisits Long-Term $2 Accumulation Zone

Summary:
Polkadot (DOT) is currently trading around $2, an area identified as a long-term accumulation zone since June 2022. Analyst Egrag Crypto has highlighted this region as a potential support level but notes that it's too early to confirm if a bottom has been established. As market conditions shift, investors are watching closely to see if they should treat this price level as a long-term buying opportunity or if a decline is forthcoming.

Key Takeaways

Polkadot is trading near the $2 mark, seen as a significant accumulation zone since mid-2022.
Analyst Egrag Crypto suggests this range is a structural support level.
The token recently saw an intraday price drop, followed by stabilization.
Polkadot's impending reduction in annual issuance is set for March 14, 2026.
Investors are keenly observing whether current market conditions will offer a buying opportunity or further declines.

Polkadot trades near $2 accumulation support

Polkadot's Trading Position

Polkadot (DOT) is seen trading close to $2 on Friday, marking a return to a price level defined by analyst Egrag Crypto as a long-term accumulation zone, a perspective established since June 2022. Market data indicates that the cryptocurrency experienced a sudden decline within the day but has since stabilized around this price range. Egrag Crypto describes this area as the asset’s “home” range.

Polkadot

According to the analyst, they have been accumulating DOT at higher prices and have also made more recent buys at lower levels. This trading range is characterized as a structural floor, grounded in historical price movements and Polkadot’s significant role in multi-chain infrastructure.

The Potential of Polkadot on Bitwise

Egrag Crypto points to Polkadot's inclusion in the Bitwise index fund and its capabilities across multiple blockchains as critical components supporting a strong long-term investment rationale. The analyst observes that an October price spike could signal either an unexpected event or a routine revisiting of lower liquidity areas, consistent with periodic market cycles.

Chart data also revealed that the token briefly surpassed a short-term resistance level before retreating to lower prices, where it found stability. During this initial price surge, trading volumes increased, but this shifted as sellers entered during the subsequent decline.

Egrag Crypto’s analysis takes into account Wyckoff accumulation frameworks, cycle timing, and Polkadot's historical tendency to revisit deep liquidity zones before bouncing back. The analyst raises questions about which Wyckoff schematics may apply to the current price dynamics, whether the current price level indicates a bottom, and what potential upside targets could be if a cycle bottom is confirmed.

While Egrag Crypto endorses a long-term accumulation strategy, they admit uncertainty regarding whether the token has reached its final bottom or may decline further. Market watchers are currently assessing if buyers perceive this price region as a long-term investment opportunity or if factors might push the cryptocurrency lower into its accumulation zone.