Polkadot (DOT) Price Slides to 5-Year Low — $3.70 Area Key for Future Trend

Key Takeaways

• Polkadot (DOT) fell to a five-year low on April 9.
• The price trades under the $3.70 resistance area.
• Can Polkadot bounce and reclaim this lost support?
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Polkadot (DOT) decreased by over 90% in two years since its all-time high in November 2021. The price finally began a rally in 2023, but that was short-lived.

After creating a lower high in December 2024, the DOT price broke down from its long-term support at $3.70 and risks falling to a new all-time low.

Will DOT fall to new lows, or can it muster enough strength for a bounce? Let’s find out.

DOT Price Breakdown

The DOT price has fallen without retracement since December 2024, reaching a low of $3.25 on April 9.

The downward movement confirmed a breakdown from the ascending support trend line and the $3.70 horizontal support area.

Polkadot’s $3.25 low is a 5-year low and slightly above the all-time low of $2.69. So, there is now more support below the $3.70 area.

Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

The RSI is below 50, while the MACD is negative, showing a bearish trend.

So, the DOT price could fall to a new all-time low unless it reclaims the $3.70 support area.

Let’s look at a lower time frame and see if the DOT price can reclaim it.

Will Polkadot Bounce?

The daily time frame price history gives a more optimistic Polkadot outlook than the weekly one.

Polkadot’s wave count shows a completed five-wave downward movement (red) since December 2024.

While this means the long-term trend is bearish, it also suggests a significant bounce is likely.

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A descending wedge contains the final portion of the Polkadot decrease, further enhancing the likelihood of a breakout.

So does the bullish, engulfing candlestick (green icon) created on April 11.

The daily MACD has also generated a bullish divergence (orange), making a breakout more likely.

If DOT begins an A-B-C corrective move to the upside, it could reach the 0.382-0.5 Fibonacci retracement resistance at $6.50-$7.50.

Afterward, the long-term downward trend could continue.

Relief Rally in April

The DOT price lost a long-term horizontal support area and nearly fell to a new all-time low.

While the long-term trend is bearish, the short-term one predicts a bounce.

Polkadot has completed a five-wave upward movement and could begin a rally with a breakout.