Technical analysis by Phillipklh about Symbol DOT on 8/27/2025

Polkadot has developed a structure that rests on very shaky ground and could flip from bullish to bearish at any time. The main concern lies with the Minor Wave 2, which retraced exactly 100%. According to Elliott Wave rules, a Wave 2 may not retrace beyond the starting point of Wave 1, making this a near-perfect but fragile setup. Nevertheless, given the ongoing correlation with other altcoins, I have kept this scenario as my primary count. From an Elliott Wave perspective, DOT is now positioned at the start of Minor Wave 3, which also aligns with Intermediate Wave 3 and Primary Wave 3. Altogether, this creates a technically solid setup for swing long positioning—provided that the structure holds. The order book shows some clustering around the high of Minor Wave 1, but no significant concentrations beyond that. Similarly, the liquidation heatmap remains sparse, with only minor liquidity pockets at the high of Wave 1. Derivative data confirms this lack of conviction, as funding rates are neither strongly positive nor negative. This reflects a market in uncertainty—neither euphoric nor fearful. Broader macro correlations may also be a factor, especially with Nvidia’s (NVDA) earnings announcement tomorrow. Tech and crypto often move in tandem, meaning the results could play an important role in shaping DOT’s next move. For now, I will wait to see how events unfold, particularly as I am already positioned in Cardano. Positive earnings could act as a catalyst for a potential Wave 3 breakout, while negative results could instead trigger a deeper correction.