Over the last 24 hours, Polkadot (DOT) has experienced a decline of 4.38%, as bearish trends have tightened their grip on the market. CoinMarketCap’s recent data highlights this drop, which only adds to the string of poor performances for DOT, including a 7.99% loss over the past week. Yet, market analyst Ali Martinez suggests that this current downtrend might have a silver lining.
## Key Support Zone for Polkadot: Will DOT Defend and Bounce to $10.80?
Amid last week’s heightened market volatility, Polkadot slipped beneath a crucial support level of $4.47, indicating growing bearish sentiments. Martinez points out that DOT seems to be approaching an essential support zone at $3.80, which could act as a turnaround point in the ongoing slump.
Delving deeper into this analysis, it’s clear that DOT’s movements are currently channeled in a broad range of consolidation extending back to July 2023. Should this decline continue, it’s likely the altcoin will test $3.80, marking the channel’s lower boundary.
Historically, this support has seen market bulls stepping in to boost demand, preventing a further slide. Martinez notes that if this pattern holds, Polkadot might witness a resurgence towards $6.40, aligning with the channel’s midpoint.
A strong buying wave could potentially propel DOT to a value of $10.80, the channel’s upper limit, translating into a possible 180% gain. However, failing to hold at the $3.80 support might see DOT dropping to $2.30, with possible targets fluctuating between $1.25 and $1.45.
## A Glance at the Polkadot Market
Currently, Polkadot is trading at $4.32, experiencing a daily decline exceeding 4%. Concurrently, its trading volume has halved in the past day, valued now at $145.81 million. Typically, a falling price alongside dwindling trade volume may indicate reduced selling pressure, hinting at a possible price reversal, as Martinez anticipated.
Examining the technical indicators, the Relative Strength Index (RSI) on its daily chart—used to gauge whether a market is overbought or oversold—currently sits at 39 and is trending downward. This supports the prediction of an upward shift for DOT. However, the asset remains well below its 100-day Simple Moving Average (SMA), suggesting that any rally might not be imminent.
Despite these challenges, with a market cap sitting at $6.72 billion, Polkadot retains its position among the top 30 cryptocurrencies globally.
