- Polkadot is trading at $3.58 near critical support at $3.45, with oversold indicators suggesting a possible short-term bounce.
- However, bearish momentum remains strong, and a break below support could lead to further declines.
Polkadot (DOT) is currently trading at $3.58, down 1.65% in the last 24 hours, as it tests a vital support level at $3.45. While broader market sentiment and a lack of Polkadot-specific news weigh on the price, technical signals show a possible turning point for DOT in the coming days.
Polkadot Technical Indicators Signal Potential Rebound
One of the most promising signs for bullish traders is DOT’s Relative Strength Index (RSI), which sits at 38.17—just above the oversold zone of 30. This suggests that selling pressure may be nearing exhaustion, opening the door for a potential relief rally. The Stochastic oscillator further supports this, with extreme oversold readings (%K at 10.92 and %D at 8.17), often seen ahead of short-term recoveries.
However, the picture is not entirely bullish. DOT continues to trade below both its 7-day and 20-day simple moving averages, currently at $3.82 and $4.08, respectively. This confirms ongoing bearish momentum. Additionally, the MACD histogram at -0.0940 supports the bearish case, as the MACD line remains below the signal line—typically a sign of continued downside risk.
Key Levels to Watch: Support at $3.45 and Resistance at $4.08
The immediate support at $3.45 aligns with DOT’s 24-hour low and has become a critical level for bulls to defend. A failure here could push the price lower toward $3.01, representing a potential 16% drop. On the flip side, resistance sits at $4.08, the middle Bollinger Band and 20-day SMA. A bounce off support could drive a rally toward this zone, offering an estimated 14% upside.
Should You Buy Polkadot at $3.58?
The current setup presents a favorable risk-reward ratio for aggressive traders willing to enter near $3.45 with tight stop-losses. With about 14% upside potential versus 4% downside risk, the 3:1 ratio may attract swing traders. However, conservative traders may prefer to wait for confirmation, such as a bounce supported by volume.
Polkadot’s price action is caught between oversold technicals and ongoing bearish pressure. How DOT behaves around the $3.45 mark in the next 24–48 hours could define its short-term trajectory. A decisive move above this level may signal a recovery toward $4.08, while a breakdown could accelerate losses toward $3.01.
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