Polkadot (DOT) faces intense pressure, with the price dropping to a new low, sparking interest in a potential reversal. We will analyze the current technical conditions.
Current Technical Indicators
Polkadot's price has stabilized around $3.25, where major liquidity rests. Resistance is noted at $5, with support around $3.75. The RSI indicator is approaching historical lows, which may signal potential local rallies.
Chart Structure and Volume
The bearish structure initiated at $7.67 has continued for weeks, culminating in a new low around $3.25. The recent leg down occurred on significantly low volumes, suggesting a potential final-stage capitulation. Fluctuations around $3.25 and $3.75 could create reversal conditions.
Price Action Expectations
The current situation requires a cautious approach. If the $3.25 level is successfully defended with a subsequent recovery to $5, it may signal the onset of a reversal. Otherwise, a lack of conviction in reclaiming $3.75 suggests continued bearish trends.
Polkadot sits at crucial levels in the context of heavily oversold territory. Grounds for a potential turnaround exist, and market attention is focused on upcoming price actions.
