Polkadot (DOT) Shows Signs of Wyckoff Spring, Analysts Eye Potential Trend Reversal

Polkadot (DOT) is exhibiting early technical signals of a potential market reversal following a deep retest of its support levels. Analysts, led by Bitcoinsensus, are examining whether the asset has entered the Wyckoff "Spring" phase, which is considered one of the strongest bullish signals within accumulation cycles. This technical setup emerges as DOT displays renewed intraday volatility and a sharp rebound from recent lows.

The price chart reveals a decisive breakdown near the start of December, where DOT dropped aggressively before buyers stepped in around the $2.00 zone. The subsequent sharp wick recovery, visible on TradingView charts, is characteristic of the Wyckoff Spring pattern. This event typically involves a price dip below support to trigger stop-losses and shake out weak holders. After the bounce, DOT climbed back toward the $2.30 region before facing rejection, subsequently retracing to the $2.12 zone at the time of the analysis.

Bitcoinsensus notes that DOT's accumulation structure has been forming since 2023, with the current deep support test fitting the criteria for a Wyckoff Spring. In classical Wyckoff theory, the Spring represents the final shakeout before a major trend reversal. The analyst highlights a deep test of support consistent with Spring behavior, a multi-year accumulation range, and a potential upcoming Sign of Strength (SOS) if the price breaks above resistance. The shared breakout target is a substantial $12–$15 range.

The chart analysis outlines the typical Wyckoff structure applied to DOT: Selling Climax (SC), Secondary Test (ST), Automatic Rally (AR), the current potential Spring phase, followed by a potential Last Point of Support (LPS) and a Sign of Strength (SOS) breakout. If DOT follows this structure, the next key development would be a sustained move above mid-range resistance.

Despite the bullish setup, the current DOT/USDT chart shows choppy movement with sharp rises followed by rapid selloffs. Volume remains modest, suggesting stronger conviction is needed for a full trend reversal. At the time of reporting, DOT was hovering near $2.12, holding above recent lows but not yet showing a clear breakout. Until DOT can reclaim key resistance levels, the Wyckoff Spring remains a possibility rather than a confirmed trend shift.