Polkadot (DOT) Market Analysis

• The value of Polkadot decreased by 4.38% in daily trading and 7.99% over the week, moving toward crucial support at $3.80.
• Analysts predict a price recovery as DOT holds at $3.80, targeting $6.40 and $10.80.
• Declining trading volume suggests weakening selling pressure, but DOT remains below its 100-day SMA, indicating a delayed market rebound.

Polkadot (DOT) has seen a notable decline in the past 24 hours, down 4.38%, with an overall loss of 7.99% this week, as reported by CoinMarketCap. This trend reflects broader market negativity and tests critical support levels.

The price approaches $3.80, as it fell below $4.47, highlighting bearish dominance. Analysts like Ali Martinez note this area as crucial for potential upward movements.

> #Polkadot $DOT is nearing key support at $3.80. Holding this level might trigger a strong rebound towards $6.40 or even $10.80. Monitor this area for bullish opportunities!
> — Ali (@ali_charts) March 8, 2025

If price action declines further, it will test the base of the trading channel formed in July 2023. A rebound is likely if buyers show interest at $3.80, pushing values toward $6.40.

Potential for Market Rebound to $10.80

Historical charts indicate that defending the $3.80 level could lead to significant price gains. Analysts project DOT could surpass $6.40 and reach $10.80 with sufficient buying momentum, translating to a 180% increase from support.

Failing to maintain the $3.80 threshold might send DOT down to $2.30, facing targets of $1.25 and $1.45. Upcoming days will be critical to assess whether support holds or further declines occur.

As of this analysis, DOT was at $4.32, showing a daily decline of over 4%. Trading volume has dropped by 50% in the last 24 hours to $145.81 million. This decline in activity and price points suggests reduced market pressure per Ali Martinez’s future price analysis.

Technical Indicators and Overselling

The Relative Strength Index (RSI) stands at 39 and is trending downwards. This indicates that DOT is nearing an oversold status, hinting at a potential price bounce. However, a substantial recovery will likely require time, given the current 100-day SMA position.

Polkadot remains in the top 30 cryptocurrencies with a market value of $6.72 billion despite its recent decline. The behavior of DOT at the $3.80 support will be closely watched by investors to gauge its next price trajectory.