The situation in the Polkadot market is deteriorating amid increasing bearish pressure, as shown by the recent price drop of the token.
Current Situation in the Polkadot Market
Polkadot is showing bearish price action, down 6.01% and trading at $3.28 at the time of writing. The increasing selling pressure indicates that most traders in the market are selling DOT tokens, and the price may drop further.
Support and Resistance Analysis
On the weekly chart, DOT continues to form lower peaks, indicating strong bearish momentum in recent weeks. The former support level of $4.50 has now turned into a key resistance zone after breaking below it.
Possible Scenarios for Future Price Movement
If Polkadot fails to stay above the key support level of $3.00, the next major resistance zone will be in the $2.50-$2.00 range, where historical lows were seen during the last bearish cycle. However, a change in market sentiment will be required for a sustained rally.
The Polkadot market is facing significant challenges, and the token's future price behavior will depend on buyers' ability to overcome current resistance levels.
