Polkadot (DOT) has been in a long-term bearish trend since March 2025 but has recently posted a 4.41% gain over the past week. While the weekly chart remains bearish with ongoing structural breaks since September and steady selling pressure indicated by the A/D indicator, the 4-hour timeframe shows a bullish shift. Two bullish structural breaks occurred as DOT breached previous lower highs at $1.75 and $1.85. The 4-hour A/D indicator is climbing, and the Awesome Oscillator shows bullish momentum, suggesting a potential move toward the psychological $2 resistance level and possibly the weekly supply zone at $2.5.
However, analysts warn that the higher timeframe trend is still bearish, and the lack of sustained demand in the broader market, coupled with Bitcoin's struggle near the $90k resistance, could limit altcoin rallies. Risk-averse traders are advised to remain sidelined, while short-term traders could target profits in the $2.0-$2.1 area, with a long setup invalidation point below $1.82.
Separately, Dash (DASH) rallied over 10% in 24 hours, moving from $40.20 to $44.44, outperforming Bitcoin's modest 0.14% gain. This surge is partly attributed to strength in the privacy coin sector, with ZCash (ZEC) also performing well. The 1-day chart for Dash shows a bullish structure shift after breaching a lower high at $41.27 on December 27th, potentially signaling an early trend reversal from a downtrend that began in mid-November.
Technical analysis points to a next target near $50, with a supply zone identified at $52.5. The Visible Range Volume Profile highlights $48 as a high-volume node, suggesting significant resistance. Analysts note that a move past $52 by early January seems unlikely, especially given Bitcoin's lack of strong demand. Traders are encouraged to book profits on long positions as Dash gravitates toward a liquidity pocket around $53, where a concentration of liquidation levels exists.
