Polkadot (
$DOT is showing clear signs of momentum exhaustion after facing rejection from the upper boundary of its trading channel. The recent upside push failed to hold above the breakout area, signaling a lack of follow-through from buyers.
As long as price remains capped below the key resistance zone, the market structure stays bearish, and downside continuation remains the higher-probability scenario. Sellers continue to control the trend, while buyers have yet to reclaim critical levels.
Short Trade Setup:
Entry Zone: 1.98 – 2.02
Stop Loss (Invalidation): 2.07
Downside Targets:
Target 1: 1.90 — initial demand reaction zone
Target 2: 1.82 — prior support and bearish extension area
This setup favors traders who wait for confirmation and respect risk.
chasing volatility or ignoring invalidation levels here is a fast way to get trapped on the wrong side of the move.
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