Polkadot (DOT) Price Breaks Below $4.8 Support Level, Opening the Door to Further Losses

This decisive move to the downside signals increased bearish pressure, as sellers continue to dominate the market. With DOT now trading in a vulnerable zone

Polkadot (DOT) price has taken a dramatic turn, breaking below the crucial $4.8 support level, a move that has put the spotlight on the next key support zone at $3.5. This decisive move to the downside signals increased bearish pressure, as sellers continue to dominate the market.

With DOT now trading in a vulnerable zone, concerns are mounting over whether further losses could be imminent. However, hopes for stabilization or even a recovery hinge on the potential for bulls to intervene.

A glance at the market sentiment reveals a bearish picture, especially following the breakdown of the $4.8 support level. Currently, traders are exhibiting stronger selling interest, which has tipped the market sentiment bearish.

This bearishness is fueled by fear of additional losses, which might cause short-term holders to unwind their positions, potentially fueling a deeper decline toward the next support zones.

The price has also slipped beneath the 100-day Simple Moving Average (SMA), a move that could have significant implications for the ongoing market trend.

This breakdown suggests that bearish momentum is strengthening, as the SMA typically acts as a dynamic support level in an uptrend. However, if this level is quickly reclaimed, it could indicate a potential reversal, allowing bulls to regain control and push the price higher.

Should DOT fail to stabilize above the 100-day SMA, selling pressure might intensify, leading to further declines.

Relative Strength Index (RSI)

Technical indicators are reinforcing the bearish picture, especially with the RSI trending downward, suggesting a lack of strong buying interest and decreasing momentum.

This could indicate that sellers are gradually overwhelming buyers, leading to a decline in the strength of the downtrend. However, if the RSI manages to stabilize and move back into oversold territory, it could signal a potential shift in momentum, as oversold conditions usually favor buyers.

Overall, Polkadot’s recent drop below the $4.8 support level has left the market at a crossroads, with two primary scenarios emerging: a potential rebound or a continued decline.

Scenario 1: Potential Rebound

If buyers manage to step in and provide support around the $3.5 zone, DOT could attempt a recovery, targeting the previous resistance level at $4.8 and possibly the $6.2 resistance.

A strong rebound from this zone, supported by increased volume and improving market sentiment, may signal a bullish reversal and reignite upward momentum.

Scenario 2: Continued Decline

On the other hand, if selling pressure persists and DOT fails to reclaim key levels, the decline might extend toward the $3.5 or even $1.9 price points.

As technical indicators weaken and hopes for stabilization diminish, traders may grow increasingly cautious, especially if the $3.5 support zone is breached.

This scenario suggests a deeper correction, with sellers continuing to dictate the market direction and push Polkadot toward even lower price ranges.