Polkadot hits accumulation zone — but this time, a bounce isn't guaranteed | Credit: Hameem Sarwar
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Key Takeaways
Unlike past rebounds, DOT is back in a historical accumulation zone, but indicators suggest continued weakness.
While some traders are skeptical, pointing to DOT’s failure to show strength, others believe a breakout is close.
The 20 EMA has crossed below the 50 EMA, forming a short-term death cross on the 4-hour chart.
Many cryptos have had a tough last 30 days, and DOT, the native coin of the cross-chain protocol Polkadot, is no exception. Within this period, Polkadot’s price has dropped by 16%.
This decline has moved the altcoin down to a historical accumulation region that triggers a bounce. However, unlike past times when DOT recovered, this analysis shows the altcoin might continue to consolidate or trade lower.
Polkadot Slips to Key Support
A close look at the DOT/USD daily chart shows that the technical setup is similar to most top altcoins. As seen below, DOT’s price trades close to the horizontal support of a falling triangle.
This bearish pattern indicates that Polkadot has experienced high selling pressure and is unlikely to recover. Following this setup, the Awesome Oscillator (AO) has fallen to the negative region.
The AO measures momentum by comparing recent price movements with historical ones. When the AO is positive, momentum is bullish.
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However, the negative AO reading indicates rising bearish momentum in this case. If sustained, this could pull Polkadot’s price below the support at $3.18.
Beyond the current outlook, DOT’s technical setup is similar to its performance between December and April 19. During that period, the price fell from $9.34 to $3.45.
However, this doesn’t necessarily signal that another sharp correction is imminent, but Polkadot’s price may struggle to reclaim $4 soon.
Sentiment on X (formerly Twitter) reflects this uncertainty. One user, “Crypto Mechanic,” expressed skepticism, stating that DOT’s lack of bullish strength means “no one should be buying.”
“Sitting at all-time lows and still failing to show any strength. I see a lot of people ask me about it, not sure who is making you buy this thing,” The trader noted.
In contrast, another user, “Crypto Winkie,” offered a more optimistic view, arguing that if DOT can reclaim the $3.70 mark, it could pave the way for a move higher.
DOT Price Analysis: No Strength
CCN observed that Polkadot’s price has formed a death cross for the short-term price action. As seen below, in blue, the 20-period Exponential Moving Average (EMA) has crossed below the 50 EMA (yellow).
This position indicates that DOT is in a bearish trend. If this trend continues, DOT’s price might drop to $3.02.
In a highly bearish scenario, DOT might decline below toward $2.50. However, things might change if buying pressure increases.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
