Polkadot (DOT) Price Analysis: Market Conditions Turn Bearish as Long Liquidations Spike

Cryptocurrency prices today: Polkadot drops 11%, technicals signal bearish trend

Polkadot’s price dropped sharply on Monday, declining by 11% as bearish technical indicators signaled further downside potential for the cryptocurrency.

Polkadot’s price dropped on Monday, continuing its recent bearish trend. The cryptocurrency’s technical indicators signaled further downside potential, with the price trading below key moving averages and facing immediate support at lower levels. Here's what you need to know:

Polkadot’s price has been charting a 24-hour range from $6.72 to $7.84. Over the past week, the cryptocurrency has seen highs of $7.88 and lows of $6.60.

Polkadot’s 24-hour trading volume on Monday was $619,673,488. The cryptocurrency’s total market capitalization was at $10,388,102,929, with a circulating supply of 1,500,000,000 DOT tokens.

Polkadot’s price dropped 11.62% over the past 24 hours,锐减至 6.85 美元，但较上周仍上涨 4.17%。

DOT/USDT technical analysis: bearish signals

A technical analysis of the DOT/USDT trading pair showed bearish market conditions. Polkadot’s price was trading below the 20-day moving average ($7.18), and the Bollinger Bands indicated downward pressure with immediate support at $6.50 and resistance near $7.18 and $8.

The Relative Strength Index (RSI) was currently at 41.88, suggesting that sellers had control as it remained below the neutral 50 level. A further decline in RSI toward the 30 range could signal increased selling momentum.

The Awesome Oscillator (AO) also reflected negative momentum with a bearish histogram of -0.45, indicating the potential for additional downside movement.

Liquidations highlighted selling pressure

Data from Coinglass showed a sharp increase in long liquidations, with $1.23 million in long positions closed compared to $66,860 in shorts. This liquidation imbalance suggested that the recent decline in DOT’s price forced leveraged traders to close positions, exacerbating the selling pressure.

Binance and Bybit accounted for the largest liquidation volumes, with $342,820 and $503,340 in long positions liquidated, respectively. The data also showed a trading volume increase of 84.96%, reaching $993.71 million, while open interest decreased by 11.47% to $475.61 million.

Analyst expectations for Polkadot

Crypto analyst Andrew Griffiths shared his view on Polkadots price movement, stating, “Polkadot is quite old and large, with a market capitalization already exceeding $10 billion. Despite its size, the target of $20 is realistic in the medium term.”

He added that DOT’s consolidation above the 50-day EMA and recent test pump could signal future growth, potentially aligning with Fibonacci levels at 0.5 and 0.618.

Market participants may closely monitor DOT’s price action, especially around the $6.50 support zone, for signs of a potential reversal or continuation of the bearish trend.