Polkadot (DOT) has experienced a sharp 11.62% decline in the past 24 hours, falling to $6.85 with a trading volume of $619,673,488. Despite this short-term drop, DOT maintains a 4.17% weekly gain, reflecting a mix of volatility and recovery potential.
Polkadot’s current market capitalization stands at $10.38 billion, with a circulating supply of 1.5 billion tokens. Over the past 24 hours, its price fluctuated between $6.72 and $7.84, while the weekly range extended from $6.60 to $7.88.
Technical Analysis Reveals Bearish Momentum
The DOT/USDT trading pair shows bearish conditions. Polkadot’s price is trading below the 20-day moving average of $7.18, signaling downside pressure. Bollinger Bands suggest immediate support at $6.50, while resistance levels are observed at $7.18 and $8.
The Relative Strength Index (RSI) currently stands at 41.88, indicating a seller-dominated market. A further drop below 30 could trigger intensified selling. Meanwhile, the Awesome Oscillator (AO) exhibits a bearish histogram at -0.45, hinting at the potential for additional price declines.
Liquidations Amplify Selling Pressure
Coinglass data reveals significant liquidations, with $1.23 million in long positions closed compared to $66,860 in shorts. Binance and Bybit led this trend, liquidating $342,820 and $503,340 in long positions, respectively. The trading volume surged by 84.96% to $993.71 million, while open interest fell by 11.47% to $475.61 million, underscoring increased selling activity.
Analyst Insights
Crypto analyst Andrew Griffiths remains cautiously optimistic, stating, “Polkadot’s size and market capitalization make a medium-term target of $20 realistic.” He highlighted DOT’s consolidation above the 50-day EMA and Fibonacci levels as potential indicators of future growth.
Market participants are closely watching the $6.50 support zone for potential reversals. While the bearish trend dominates, any signs of recovery could spark renewed interest in this major blockchain platform.
Also Read: Polkadot [DOT] Breakout Signals 100% Upside Potential as Momentum Builds for 2025
Polkadot faces short-term bearish pressure, but technical indicators and market sentiment suggest possible recovery opportunities. As the $6.50 support level is tested, traders will remain vigilant for signals of market direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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