Polkadot Price Eyes Breakout as Inverse Head-and-Shoulders Takes Shape

Polkadot's (DOT) price has been showing signs of a potential bullish reversal as an inverse head-and-shoulders pattern develops on its 4-hour chart. The setup suggests buyers are building momentum ahead of a possible breakout attempt, with the right shoulder still forming.

The current DOT price is holding near $0.855, while the most important level to watch out for would be the neckline at the $1.05 price level. Breaking through this neckline could signify a successful breakout in the formation, thus favoring the bulls with a possible target at around the $1.38 mark.

Meanwhile, network activity has increased, but actual usage remains limited. A 40% surge in activity was seen in just one day, reaching a peak of 0.02 TPS (transactions per second) for the week. However, the low number raises questions about whether the increasing infrastructure reflects actual demand from users.

Looking ahead, the next key step for DOT will hinge on the ability of the bulls to breakout and sustain trading above the neckline at $1.05.