Polkadot (DOT) Price Hits $2.76 as Bears Tighten Grip — Can It Recover This Month?

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• DOT trades at $2.76, failing to regain key support levels.
  
• RSI and MFI suggest oversold conditions, with selling pressure increasing.
  
• Break below $2.78 could lead to further declines; recovery requires surpassing $3.36.

Polkadot (DOT) has entered November facing continued bearish pressure after a sharp 35% drop in October. Trading at $2.76, the altcoin has failed to reclaim key support levels, signaling weak momentum and declining capital inflows. With technical indicators pointing toward oversold conditions, traders are closely monitoring whether DOT can stabilize or if further declines are imminent.

Oversold Signals Highlight Weak Momentum

On the 4-hour chart, DOT’s Relative Strength Index (RSI) sits at 35.47, creeping toward oversold territory. A drop below 30 could trigger extended downside pressure, potentially pushing the token closer to the 20 level before any meaningful rebound. Meanwhile, the Money Flow Index (MFI) reads 45.63, reflecting subdued liquidity inflows and persistent selling pressure. Together, these indicators signal cautious market sentiment, with sellers currently in control.

Technical Patterns Suggest Further Downside

Polkadot recently broke below the lower trendline of a previously observed symmetrical triangle, confirming bearish momentum. The Awesome Oscillator (AO) remains deep in negative territory at –0.46, reinforcing the dominance of sellers. Additionally, the 20-day EMA sits above the candlesticks, acting as resistance and making an upward reversal more challenging. On-chain data show open interest dropping by 5.29%, indicating that both retail and institutional traders are retreating.

Also Read: Polkadot and Sui ETFs Listed on DTCC—Could SEC Approval Come Any Day?

Key Levels to Watch for DOT

Fibonacci analysis shows DOT trading at the 0 Fib level ($2.78), with downward pressure threatening to breach this support. On the upside, a recovery above the 0.236 Fib level at $3.36 could invalidate the bearish outlook and offer some relief. However, current market conditions favor continued consolidation or further declines in the near term.

Polkadot’s price action and technical indicators point to a cautious market environment, with bears holding the upper hand. Unless buying momentum returns, DOT may struggle to regain lost ground and could see new lows before any meaningful recovery occurs. Traders and investors will need to watch these key support and resistance levels closely in the coming days.

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.