Polkadot [DOT] Faces a Critical Test: Can It Achieve a Strong Rebound and Return to a Bull Market?

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Last week, Polkadot (DOT) saw a significant decrease in market value, with prices dropping over 17%, currently trading at $7.08, with a market cap slightly above $10 billion. However, despite the significant price correction, investors remain optimistic about DOT's future, particularly as it tests a key support level.

According to analyst World Of Charts, DOT has rebounded from a critical trading zone and is currently testing the support level. If it successfully maintains this support, it could trigger a bullish rebound, with prices expected to rise to $30. Nevertheless, market sentiment is mixed, with AMBCrypto analysis showing that DOT's weighted sentiment has declined since December 18, indicating an increase in bearish sentiment. Meanwhile, social volume has surged, with investors actively discussing Polkadot, which has increased market volatility.

Technical indicators such as the Relative Strength Index (RSI) are currently at 39, suggesting that the market may face more selling pressure, leading to further price adjustments. It is worth noting that Polkadot's network activity has also declined, with the number of active addresses and transaction volume on the blockchain decreasing in December, which may impact market confidence.

In summary, Polkadot is currently at a crossroads, and the trend over the next few days will determine whether it can successfully test the support level and rebound or continue its downward trajectory.

Live with the Dot Avatar, watch the live broadcast to catch the bull market!