Polkadot ($DOT) seems poised to explode because market momentum is building up around an important resistance area. Analyst Michael van de Poppe reports that the token is already beginning to reverse trend after several weeks of consolidation, with the critical point of the market being the $5 level, at which a further bullish rally will subsequently come.

One of my old favourites, $DOT, is on the edge of breaking upwards in a strong uptrend.It's breaking above the 20-Week MA and has made some strong fundamental changes. This should imply that we're about to see this move, what needs to happen first? It has to break $5 and then… pic.twitter.com/pQnn0UOh1W

— Michaël van de Poppe (@CryptoMichNL) October 4, 2025

Polkadot has increased slightly in recent days and currently trades at $4.20, which falls within a larger accumulation range.

There is close observation among the traders, with it going through resistance at $4.40 as it sits above support at $4. This is a pattern that usually leads to massive breakouts in the volatile crypto markets.

Technical Indicators Point to Reversal Potential

The price movement of Polkadot has been becoming more positive during the last few weeks. This asset now has a higher price than its 20-week moving average, which is an indication that the medium-term momentum might now turn in favor of the buyers.

The indicators of the relative strength index (RSI) are at 49, which indicates a balanced market with an upward potential for Polkadot.

Analysts mentioned that reclaiming and holding the $5 mark would signal a breakout of a multi-month stagnation and potentially pave the way for further gains on stronger ground in Q4.

Negatively, bulls will still be defending the support of $4. The breakout may be postponed by a prolonged tightness below that, and the correction period prolonged.

Fundamental Strength Supports Market Confidence

Outside of the technicals, Polkadot is still receiving a lot of interest due to its strong fundamentals. Polkadot, a system created as one of the most scalable and secure Web3, enables the ability to interoperate with different blockchains, a fundamentality of the decentralized future developers envision.

Its current ecosystem upgrade and parachain development program add additional support to the long-term upward expansion story of the network.

Analysts observe that these reasons have contributed to winning back confidence among the investors, making $DOT a possible leader in the next cycle of the market.

Analysts are looking at $5 as a breakout trigger.

Michael van de Poppe reminded that the breakout above 5 would probably be considered clean, and the beginning of the new upward trend will be guaranteed. It is above the 20-week MA and has undergone some good fundamental changes.

As the technical action has been improving and the fundamentals have been coming into play, traders are keenly seeing whether Polkadot will finally break through resistance and start the next round of stronger bullishness over the next few weeks.