Polkadot Price Crisis: Further Losses Incoming After DOT Falls Under $4.8

Este artículo también está disponible en español.

Polkadot (DOT) price has taken a dramatic turn, breaking below the crucial $4.8 support level, a critical threshold that previously provided stability for the asset. 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. 

Despite the bearish outlook, the $3.5 keysupport zone remains in focus, offering potential areas where DOT could stabilize or even stage a recovery. If bulls step in with strong buying momentum, the price could attempt to reclaim lost ground. However, failure to hold above these crucial levels may result in a deeper correction, pushing DOT toward even lower price points. Market Sentiment And What It Means For Polkadot

Market sentiment plays a crucial role in shaping Polkadot’s price action, especially after its breakdown below the $4.8 support level. Currently, bearish sentiment dominatesas traders react to increased selling pressure. Fear of additional losses may cause short-term holders to exit their positions, potentially fueling a deeper decline toward key support zones. Related Reading Polkadot (DOT) Defies Market Volatility, Holds Strong Above $4.8 Support Level 2 weeks ago

The price has also slipped beneath the 100-day Simple Moving Average (SMA), a key technical indicator that often determines markettrends. This breakdown suggests that bearish momentumis strengthening, as the SMA typically acts as a dynamic support level in an uptrend.  DOT barish pressure intensifies | Source: DOTUSDT on Tradingview.com

Should DOT fail to reclaim this level in the near term, selling pressure might intensify, leading to further declines. However, a decisive move back above the 100-day SMA could indicate a potentialreversal, allowing bulls to regain control and push the price higher.

Polkadot recent drop below $4.8 is reinforced by bearish technical indicators, suggesting the downtrend may continue. The Relative Strength Index (RSI) is trending downward, indicating weakening momentum and a lack of strong buying interest.  Potential Scenarios: Rebound Or Continued Decline?

The recent breakdown of Polkadot below the $4.8 support level has left the market at a crossroads, with two primary scenarios emerging: a potential reboundor a continued decline. Should buyers step in at the $3.5 support level, DOT could attempt a recovery , targeting resistanceat $4.8 and possibly $6.2.  Related Reading Polkadot (DOT) Breakout Looms With $17 Target In Sight – Details 1 month ago

A strong rebound from this zone, supported by increased volume and improving market sentiment, may signal a bullish reversal and reignite upward momentum. On the other hand, if selling pressure persists and DOT fails to reclaim key levels, the decline might extend toward $3.5 or even $1.9, with traders growing cautious amid weakening technical indicators. DOT trading at $4.2 on the 1D chart | Source: DOTUSDT onTradingview.com Featured image from Medium, chart from Tradingview.com