Polkadot is hovering around $1.29 after a roughly 2.3% daily decline, with price action confined to a narrow band between $1.28 and $1.34. The asset’s technical setup shows an oversold condition, as indicated by an RSI of 27.92, which could spur a near-term bounce even as MACD momentum remains bearish. Traders should note that DOT has traded below key moving averages, including SMA 7 at $1.34, SMA 20 at $1.61, SMA 50 at $1.85, and SMA 200 at $2.95, while EMA 12 and EMA 26 sit at $1.45 and $1.63 respectively, acting as resistance levels.
On the upside, immediate resistance stands at $1.33, with a more meaningful hurdle at $1.37; a break above $1.37 could open further upside toward the EMA 12 at $1.45 and the SMA 20 at $1.61, provided broad market support persists. A bearish scenario would see a breakdown below the immediate support at $1.27, with crucial support at $1.24 and potential descent toward the lower Bollinger Band around $1.13, particularly if MACD momentum remains negative and volume remains tepid around $6.9 million over the last 24 hours.
Investors should consider conservative entry points around a breakout above $1.33 with volume confirmation, or more aggressive entries near the current level around $1.29 with tight stops beneath $1.24, given DOT’s ATR of $0.14 and the prevailing downtrend. Ultimately, DOT faces a pivotal juncture: a test of the $1.33-$1.37 resistance zone could determine whether a meaningful recovery takes hold or if downside pressure extends toward $1.24, with the near-term outlook remaining cautiously favorable for risk-managed traders.
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