The technical analysis of Polkadot ($DOT ) shows us a clear picture: we are facing a strong downward trend in the short term, but the indicators suggest that the bottom could be very close. Selling pressure is intense, but the wick is lit for a possible rebound.
📉 The Bearish Trend Confirms Weakness
The price of DOT has fallen considerably and remains below the Exponential Moving Averages (EMA 20 and EMA 50), confirming that the bears have absolute control of the market at this moment.
Key Resistances: The former support levels now act as the first barriers that the price must overcome, with the EMA 20 (around $2.15) being the most critical. A daily close above this EMA would be the first signal of relief.
🟢 The RSI Screams "Oversold"
The relative strength index (RSI) is the focal point of this analysis. With a current value of 26.797, DOT is deeply in extreme oversold territory.
What does this mean? It indicates that the asset is "oversold" in a very short period. Statistically, this significantly increases the probability that buyers will enter the market for a short-term technical rebound.
Critical Support: The minimum of the last 24 hours, around $1.83, is the most immediate support level. Its break could lead to a final capitulation, looking for lower historical levels (some analyses point to the $1.40 range as the next strong point).
🎯 Strategy and Next Steps $DOT
For Patient Buyers: The current zone presents a high-risk/high-reward opportunity to seek a rebound. Confirmation of a reversal pattern (such as a bullish engulfing candle) or a clear turn in the RSI should be awaited before committing capital.
Rebound Target: If the rebound materializes, the first logical profit-taking target would be the EMA 20, in the range of $2.15 - $2.20.
Attention to Volume: The trading volume is high, validating the strength of the movements. The start of a bullish trend will need an increase in volume accompanying the price rise.
My Conclusion: $DOT is at a turning point. The trend remains bearish, but the oversold condition is extreme. Keep a close eye on the $1.83 level. A successful defense of this level could be the catalyst for the much-anticipated rebound.
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