Polkadot (DOT) price plummets by 4.38% as bearish forces gain market control

Polkadot (DOT) prices have declined by 4.38% in the past day as bearish forces continue to gain stronger market control.

The crypto market has seen better days. As major cryptocurrencies continue to struggle to stay afloat, one altcoin in particular has come under increased bearish pressure.

According to Ali Martinez, a crypto market analyst at The Chart Setup, Polkadot (DOT) appears to be heading towards a crucial support zone at $3.80, which could potentially stem the current decline.

This analysis follows the recent volatility that saw Polkadot slip below a key support level at $4.47.

"After a period of consolidation in a parallel channel since July 2023, Polkadot broke down below the support at $4.47, indicating a continuation of the bearish trend."

If the current downtrend persists, Polkadot will likely retest the $3.80 support zone, which also coincides with the lower boundary of the parallel channel.

"Historically, we've seen that when this support zone holds, it's usually met with buying pressure, leading to a potential bounce towards the channel's midpoint at around $6.40."

However, if the sellers manage to break through the $3.80 support level, it could open the door for further drops, potentially reaching $2.30.

"If the bulls can defend the $3.80 zone, we can expect to see some respite with possible price targets around $1.25-$1.45 if the sellers push through."

If there is strong buying pressure at the $3.88 support, it could lead to a surge in price towards the upper boundary of the parallel channel, which is around $10.80, presenting a potential 180% price gain.

Polkadot is currently trading at $4.32, showcasing a 4.38% decline in the past 24 hours. The asset has seen a 7.99% loss in the last week.

As of press time, Polkadot ranks among the top 30 cryptocurrencies with a market cap of $6.72 billion.

The post Polkadot Price Analysis: Crucial Support at $3.80 Could Trigger 180% Price Surge appeared first on Benzinga.