Polkadot Slides Into Historical Accumulation Zone as Bearish Signals Persist

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Polkadot (DOT) has entered a familiar accumulation zone, typically associated with bullish reversals. However, technical indicators suggest the altcoin may remain under pressure before any meaningful recovery. After a 16% decline over the last 30 days, DOT is now trading near critical support, but traders remain divided on whether the token will bounce or break down.

DOT Enters Key Support Region

DOT/USD has dropped to around $3.18, aligning with a historical demand zone that has previously triggered rebounds. Yet unlike past cycles, current momentum indicators are flashing red.

The Awesome Oscillator (AO), a measure of market momentum, has slipped into negative territory, indicating rising bearish pressure. At the same time, DOT’s daily chart is forming a falling triangle pattern, typically a continuation of downward trends. This setup suggests that unless a reversal pattern forms soon, further declines may follow.

Death Cross Confirms Short-Term Bearish Trend

On the 4-hour chart, DOT has confirmed a short-term death cross, as the 20-period EMA crossed below the 50-period EMA—a classic bearish signal. This crossover often marks the beginning of extended downside movement.

If bearish momentum persists, analysts warn that DOT could revisit the $3.02 level or even dip further to around $2.50, a psychological support zone. That said, some observers believe a reversal could occur if the token reclaims key levels, particularly $3.70, which may pave the way for a move toward $3.84 or even $4.00.

Mixed Sentiment Among Traders

Market sentiment is polarized. Prominent trader “Crypto Mechanic” argued on X that DOT’s persistent weakness makes it unappealing:

“Sitting at all-time lows and still failing to show any strength. Not sure who is making you buy this thing.”

In contrast, “Crypto Winkie” offered a more bullish take, suggesting that reclaiming the $3.70 level could trigger upside momentum.

Bearish Bias, But Watch for Reversal Triggers

While Polkadot remains in a technical accumulation zone, its momentum and price structure point toward sustained weakness in the near term. Unless a clear breakout occurs above resistance, the token may continue to trend downward. Still, a volume-driven bounce could surprise the market, especially if bulls defend the $3 region convincingly.

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.