Polkadot’s downtrend strengthens as price loses $2 support | Credit: Hameem Sarwar
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Key Takeaways
Polkadot has broken below the $2.00 level and is now forming a lower high.
Momentum remains weak, as indicated by the RSI and the negative BBP.
The daily structure remains bearish; as such, DOT could drop below $1.70.
Polkadot (DOT) continues to face renewed bearish pressure after posting a 9.08% weekly decline.
This performance has reinforced the broader downtrend that has weighed on the asset for months.
This latest selloff has dragged DOT’s price below the critical $2.00 psychological level, a breakdown that has put the short-term structure under the control of sellers.
With Polkadot’s price now trading at deeply depressed levels, the technical outlook remains fragile.
The lack of sustained demand following the weekly drop suggests the move is not a brief pullback but part of a broader continuation to the downside.
What’s next for DOT’s price? Let’s find out.
Polkadot Collapses
The Relative Strength Index (RSI) clearly reflects this deterioration.
On the 4-hour timeframe, the RSI sits at 35.33, well below the neutral 50 mark and edging closer to oversold territory.
This reading points to persistent selling pressure and minimal dip-buying interest.
Moreover, repeated failures to reclaim the RSI midline reinforce the dominance of bearish momentum.
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From another angle, the Bull Bear Power (BBP) indicator supports this bearish bias.
Currently printing at -0.08, the BBP histogram remains below the zero line, signaling sustained seller control.
The lack of strong green bars during minor rebounds highlights weak bullish responses, confirming that sellers continue to overpower buyers at key intraday levels.
DOT’s price action further supports this outlook. The altcoin has lost the $2.00 support level, a point that previously served as a short-term demand zone.
Since the breakdown, price has failed to regain traction, with lower highs forming beneath former support, now acting as resistance around the $1.90 region.
This shift in structure points to bearish continuation as the higher-probability outcome.
Unless DOT can reclaim the $1.90 to $2.00 range with strong volume confirmation and improving momentum signals, any upside attempts are likely to remain corrective.
For now, the broader technical structure favors further downside, leaving Polkadot’s price exposed to another leg lower.
DOT’s Price Analysis: Downtrend Still Intact
On the daily chart, DOT remains confined within a well-defined descending channel.
While the Money Flow Index (MFI) is deeply oversold at 16.46, this condition alone does not indicate an imminent reversal.
Instead, it highlights how aggressively sellers have dominated recent sessions, with capital continuing to exit rather than rotate back into DOT.
The Directional Movement Index (DMI) adds further weight to the bearish case.
At the time of writing, the negative DMI line stands at 8.83 and remains above the positive DMI line at 31.10, confirming that bearish pressure continues to outweigh bullish attempts.
At the same time, the Average Directional Index (ADX) stands at 41.12, indicating that the downtrend is not weakening but rather strengthening.
The Fibonacci retracement levels offer additional clarity on DOT’s price potential.
At $1.70, DOT’s price aligns with the zero Fib level. With indicators still pointing lower, a sustained break below $1.70 would likely expose DOT to deeper declines.
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.
