Polkadot bulls test “home” range as DOT revisits long-term $2 accumulation zone

Polkadot (DOT) traded near $2 on Friday as the cryptocurrency returned to a price level chart analyst Egrag Crypto has identified as a long-term accumulation zone since June 2022. The token experienced a sharp intraday decline before consolidating around the price area, according to market data. Egrag Crypto, in a recent post, stated the current range represents what the analyst has termed the asset’s “home” range.

The analyst disclosed accumulating the token at higher levels and adding positions more recently at lower prices. Egrag Crypto characterized the range as a structural floor based on historical price behavior and Polkadot’s position in multi-chain infrastructure, according to the post.

Polkadot Trending on Bitwise Index

The analyst cited Polkadot’s inclusion in the Bitwise index fund and its multi-blockchain capabilities as factors supporting a long-term investment case. Egrag Crypto noted that an October price wick may represent either a black swan event or a cyclical retest of lower liquidity zones consistent with four-year market cycles.

Chart data showed the token briefly rising above short-term resistance before reversing and dropping to lower levels where it stabilized. Trading volume increased during the early rally before shifting as sellers entered the market during the decline, according to the data.

Egrag Crypto’s analysis references Wyckoff accumulation structures, cycle timing, and Polkadot’s historical pattern of revisiting deep liquidity levels before recovering. The analyst’s framework poses questions including which Wyckoff schematic applies to current price structure, whether the current level represents a bottom, and potential upside targets if a cycle bottom confirms.

The analyst maintains a long-term accumulation approach while acknowledging uncertainty about whether the token has formed a final bottom or could decline further, according to the post.

Market participants are now monitoring whether buyers view the current price region as a long-term opportunity or whether market conditions will push the cryptocurrency lower into its accumulation band.