Polkadot’s free fall shows no signs of slowing | Credit: Hameem Sarwar
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Key Takeaways
Polkadot dropped 35% in October, marking a new low amid persistent selling pressure.
DOT has fallen below the support line, reinforcing the likelihood of further downside.
A rebound above the 0.236 Fib level could invalidate the bearish outlook in the short term.
After a 35% drop in October, the Polkadot (DOT) price has entered November under sustained bearish pressure.
Since its 2021 high, the coin has struggled to regain that peak.
At the time of writing, the token trades at $2.76, marking a new all-time low. It has struggled to reclaim key support levels, while technical indicators continue to reflect weak momentum and fading capital inflows.
Oversold Region Ahead
As DOT trades just above its multi-month low, traders will be watching closely to see whether the asset can stabilize for an upward reversal or if further decline lies ahead.
On the 4-hour chart, DOT’s Relative Strength Index (RSI) sits at 35.47, showing weakening bullish momentum. It hovers below the neutral zone, edging toward oversold territory.
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A drop below 30 could confirm extended downside pressure, increasing the likelihood of another leg down to the overbought threshold of 20 before any meaningful DOT price rebound.
Furthermore, CCN observed that the altcoin was previously trapped in a symmetrical triangle. However, as of this writing, Polkadot’s price has dropped below the lower trendline of the pattern.
Similarly, the Money Flow Index (MFI) records 45.63. This shows that liquidity inflows remain subdued while selling pressure builds.
Although neutral, the reading leans bearish, indicating that market participants are not ready to re-enter the market aggressively after last month’s 35% slide.
The Awesome Oscillator (AO) stays deep in negative territory with consecutive red bars at –0.46, confirming strong bearish momentum and showing that sellers are tightening their hold.
The 20 EMA supports this outlook, sitting above the candlesticks and acting as a barrier against any upward movement.
On-chain data indicate that DOT’s open interest has decreased by 5.29%, suggesting that both retail participants and market makers are retreating and anticipating further downside volatility.
If this momentum continues, DOT’s price could fall further, setting a new low in the coming days.
A look at the Fibonacci levels reveals that DOT is currently at the 0 Fib level, trading at $2.78, with a long red candlestick ready to push it below this level.
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.
