Persistent negative funding rates and lower-high structure reinforce downside bias.
Polkadot (DOT) is approaching a critical breakdown zone after an extended decline, with bearish momentum intensifying across multiple timeframes.
Despite a 27% drop over the past month, the altcoin has shown little sign of stabilization. This is due to repeated failures to reclaim key resistance levels, which continue to weigh on price action.
Meanwhile, growing selling pressure and weakening demand are pushing Polkadot’s price closer to a decisive support level, raising the risk of a deeper move toward $1.
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On the 4-hour chart, DOT trades around $1.15, hovering just above a key support zone near $1.14. This level has acted as a temporary floor.
However, repeated tests are weakening its strength.
Meanwhile, the broader structure shows a clear breakdown from the $1.35 resistance zone, confirming a bearish continuation pattern.
Technical indicators reinforce the downside bias. The Awesome Oscillator (AO) remains deeply negative, with expanding red histogram bars signaling increasing bearish momentum.
At the same time, the Money Flow Index (MFI) has dropped below 25, indicating strong capital outflows and oversold conditions.
However, oversold signals have yet to translate into a meaningful bounce. Instead, price continues to grind lower, suggesting that demand remains weak.
On the daily chart, Polkadot’s price has remained confined in a downtrend. The daily chart shows consistent lower highs and lower lows, reinforcing sustained bearish control.
Recently, DOT slipped back toward the $1.15 region, hovering just above critical support near $1.09. This level now acts as a last line of defense for bulls.
Meanwhile, momentum indicators offer little relief.
The Moving Average Convergence Divergence (MACD) remains in negative territory, with only a weak convergence attempt, signaling fading bullish momentum.
At the same time, the Relative Strength Index (RSI) remains near 38, indicating weak buying strength and persistent selling pressure.
However, price compression is becoming evident as volatility tightens near support. This suggests a potential inflection point.
A breakdown below $1.09 could accelerate losses toward new lows. Alternatively, a rebound may face immediate resistance near $1.34, keeping the broader bearish structure intact for now.
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.
