Key Takeaways
- Polkadot’s price has dropped 22% since May 18, finding temporary support at $3.58, but remains trapped within a descending channel amid bearish momentum.
- Technical indicators like the MACD, AO, and Supertrend show continued selling pressure, with potential downside toward $3.32 unless a breakout above resistance occurs.
Polkadot (DOT) is finally showing signs of stabilization after a prolonged decline that erased its breakout gains from last month. The altcoin’s price has dropped 22% since May 18, falling back to $3.58 — a level that had been anticipated in our earlier analysis.
Despite finding support at this key level, the likelihood of a strong rebound remains low as bearish momentum continues to dominate the market.
Polkadot Finds Temporary Support at $3.58
Polkadot’s price action over the past month has been confined to a persistent descending channel. The daily chart shows a possible double bottom pattern emerging near the $3.58 mark, first tested on April 8.
Following that initial bounce, DOT had briefly rallied to $5.35 before returning to test this critical support level once again. However, regaining upward momentum could prove difficult without a breakout above the upper boundary of the descending channel — which continues to act as a firm resistance zone.
Technical indicators echo this cautious outlook. The Awesome Oscillator (AO) remains below the zero line, signaling sustained bearish momentum. Similarly, the Relative Strength Index (RSI) supports the view of continued downward pressure.
Bearish Signals Strengthen on Lower Time Frames
Zooming into the 4-hour chart, Polkadot’s bearish outlook becomes even clearer. The altcoin continues to trade within a falling channel that began on May 23, highlighting weak demand and persistent selling activity.
Adding to this bearish picture, the Moving Average Convergence Divergence (MACD) has crossed into negative territory, indicating that sellers remain in control. Likewise, the Supertrend indicator has turned negative, with resistance now firmly established above DOT’s current price.
If bearish momentum holds, DOT could slide toward $3.32 — and potentially below $3 — in the coming sessions.
Also Read: Polkadot DAO: How to Use Polkassembly for Onchain Governance Participation – In Brief
Outlook Hinges on Breakout Potential
For a reversal to take shape, Polkadot bulls must push the price decisively above the upper trendline of the falling channel. A breakout of this nature could open the door for a move toward the $4.58 resistance level.
Until then, however, DOT’s recovery remains stalled amid the prevailing bearish market structure.
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
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
