- The value of Polkadot decreased by 4.38% through daily trade and reached 7.99% this week while market bearish forces guided its path toward crucial support at $3.80.
- The analysts predict a price recovery as DOT maintains a $3.80 support level and identify two targeted values at $6.40 and $10.80.
- The deterioration of trading volume shows selling pressure weakens but DOT stays below its 100-day SMA which indicates a delayed market rebound.
Polkadot (DOT) has seen a notable decline in the past 24 hours, dropping by 4.38%, according to CoinMarketCap data. The recent price movement reflects a broader negative trend, with DOT losing 7.99% over the past week. Analysts indicate that the asset’s decline is testing key support levels, which could determine its next move.
The price of Polkadot (DOT) approaches $3.80 as the support level because the token dropped below $4.47, demonstrating bearish market takeovers. The analysts, including Ali Martinez, point out that Polkadot stands near its vital support area at $3.80. Over time, this support area has acted as a target for kicks in which might trigger a rally upward.
A continuation of declining price action will test the base of the parallel trading channel that formed during July 2023. The market could rebound if buyers maintain their interest at $3.80, thereby pushing the price closer to $6.40.
A potential market rebound involves the possibility of DOT reaching $10.80
Polkadot shows on historical charts that defending the support level at $3.80 would enable a significant price increase. Research analysts expect DOT to climb past $6.40 resistance then reach $10.80 with adequate sustained purchasing power. Such a development would result in Dot token value rising by 180% from its support level.
The failure to defend the $3.80 mark would trigger DOT to drop to $2.30 before facing potential target levels between $1.25 and $1.45. The following few days will show whether support stands or new decreases will occur.
When this analysis was prepared, DOT operated at $4.32 but it demonstrated more than 4% daily price decrease. The trading volume for DOT has dropped by 50% within the last 24 hours as it currently stands at $145.81 million. The combination of reduced trading activity and lower price points provides evidence of declining market pressure according to Ali Martinez’s analysis of a future price change.
The technical indicators show DOT is reaching an oversold status
The Relative Strength Index (RSI) currently shows a value of 39 while it descends on the technical graphs. Based on technical indicators, DOT shows signs of overselling which indicates that a price bounce may occur soon. Any substantial price recovery from this level will likely need considerable time according to the current position of the 100-day Simple Moving Average (SMA).
Polkadot continues being one of the top 30 cryptocurrencies despite its declining market performance because it holds a $6.72 billion market value. The progress of DOT at the $3.80 support area will receive intense investor observation to determine its next price trajectory.
