Recently, the price trend of Polkadot (DOT) has attracted the attention of the market. According to technical analysis, DOT is at a critical price level and may soon experience a significant rise.

Analysis indicates that DOT has completed an upward impulse wave and the subsequent correction wave. The depth of this correction wave has reached the 61.8% Fibonacci retracement level of the previous wave, which is a common technical indicator.

Next, it is expected that DOT will form a new upward impulse wave. If this expectation holds true, we may see the price break through the current trading range and create new highs. The potential target price for this upward wave is set at $4.712.

However, investors should also be aware of potential risks. If the price falls below the support level of $3.427, the current bullish outlook will be challenged.

Overall, the short-term outlook for DOT appears to be quite optimistic. However, like all cryptocurrency investments, market volatility remains high, and investors should conduct thorough research and risk assessment before making any decisions.

It is worth noting that the cryptocurrency market is influenced by a variety of factors, including but not limited to technological developments, regulatory changes, and overall market sentiment. Therefore, while technical analysis provides valuable insights, it should not be the sole basis for investment decisions.