A failed breakout leaves Polkadot vulnerable as indicators turn bearish | Credit: Hameem Sarwar
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Key Takeaways
Polkadot loses bullish structure, slipping below key support levels.
Weak momentum and low open interest hinder a DOT breakout.
DOT risks falling under $2 unless demand strengthens soon.
Polkadot (DOT) price has remained under pressure in recent days. This happened after the altcoin attempted to break out of a bullish market structure.
However, that has collapsed, making it more difficult to erase the 35% correction it experienced over the past 30 days.
Amid this technical setup, bears have remained in control. Here is how DOT’s price might perform with a few days left to close the year.
Polkadot Outlook Turns Bleak
Between Dec. 4 and 10, Polkadot’s price formed a rounding bottom on the 4-hour chart. The pattern indicated that the DOT was poised to set new highs.
Unfortunately, that did not happen. Instead, DOT faced resistance at $2.90. Following the move, the cryptocurrency has also broken below the support at $2.20, with the underlying support at $2.06 at risk.
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A closer look at the chart shows that the Awesome Oscillator (AO) has remained positive. However, it has consistently flashed red histogram bars.
As it stands, DOT is locked in a symmetrical triangle. Amid that, the Moving Average Convergence Divergence (MACD) has formed a bearish crossover.
Should the MACD reading fail to flip to the positive region, then Polkadot’s price might struggle to test the upper trendline of the triangle. In that scenario, DOT could decline below $2 as predicted in a previous CCN analysis.
At the same time, the On-Balance Volume (OBV) has continued to drop, indicating weakening demand and reduced accumulation.
Adding to the pressure, Polkadot’s market value has fallen below the 20-period Exponential Moving Average (EMA).
Trading under this key level typically reflects a loss of short-term momentum and strengthens the bearish outlook.
Due to these factors, DOT may struggle to overcome the resistance at $2.40. If conditions remain the same, the cryptocurrency could decline toward $1.96, where the next support level is located.
However, the trend could shift if buying pressure increases. A rebound in demand might allow DOT to challenge higher levels, potentially pushing the price toward $2.65.
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.
