Market Overview for Polkadot/Tether (DOTUSDT)

Summary
• Price tested support near 2.11–2.12 and broke above resistance at 2.15–2.16.
• RSI and MACD show moderate bullish momentum after a prolonged bearish phase.
• Volume spiked during key breakouts, validating price moves.
• Volatility expanded mid-session, with Bollinger Bands widening.
• A bullish engulfing pattern emerged post-breakout, suggesting continuation bias.

Polkadot/Tether (DOTUSDT) opened at 2.179 on 2026-01-04 at 12:00 ET, hitting a high of 2.204 and a low of 2.109 before closing at 2.182 on 2026-01-05 at 12:00 ET. The 24-hour volume was approximately 5,027,373.55, with a notional turnover of roughly $10,476,969.42.

Structure & Formations

Key support levels were observed around 2.11–2.12 and 2.096–2.103, while price managed to break above the 2.15–2.16 resistance cluster. A strong bullish engulfing pattern formed during the early hours of 2026-01-05, confirming a potential reversal and continuation of the upward move. Price also tested the 2.19–2.204 swing highs, indicating a strong short-term bullish bias.

Moving Averages

On the 5-minute chart, the price moved above the 20-period and 50-period moving averages, indicating a bullish bias in the short term. While the daily chart is not provided, the short-term momentum supports a move above the 50-day line if this trend continues.

MACD & RSI

MACD turned positive mid-session and remained in bullish territory, suggesting ongoing upward momentum. RSI rose from oversold conditions (below 30) to a neutral to slightly overbought level (65–70), indicating that while the move is strong, it is not yet extreme.

Bollinger Bands

Volatility expanded significantly during the breakout period, with Bollinger Bands widening. Price moved above the upper band following the 2.19–2.204 high, indicating a strong move and a potential continuation phase.

Volume & Turnover

Volume surged during the breakout above 2.15–2.16 and again during the 2.19–2.204 high, confirming the strength of these price moves. Notional turnover also increased in lockstep with volume, reinforcing the bullish thesis.

Fibonacci Retracements

Key Fibonacci levels were observed during the 2.11–2.204 swing. Price reached the 61.8% retracement level around 2.17–2.18 before closing near 2.182. This suggests that the pair is testing critical Fibonacci resistance and may attempt to push higher in the next 24 hours.

Market Outlook

The breakout above key resistance levels and the bullish engulfing pattern suggest that DOTUSDT may continue its upward trend in the short term. If the pair holds above 2.17–2.18, a test of the 2.20–2.22 area could follow. However, a failure to hold above 2.15–2.16 could trigger a pullback toward key support levels. Investors should remain cautious of potential overbought conditions and volatility shifts.