The price of DOT is now at a critical point.

  • Based on market indicators and sentiment analysis, DOT prices are expected to decline from press time levels.

  • If enough buying pressure emerges at the support level, a strong rebound can be expected

Polkadot’s [DOT] recent weekly gains of 21.81% may soon stall, especially considering the asset has already started to fall. At the time of writing, DOT is down 1.81%, and the altcoin may soon see further declines.

The latest analysis from AMBCrypto highlights DOT’s next target levels, indicating where a potential rally could occur.

Traders bet on DOT to fall, bearish pressure intensifies

Depending on current market sentiment, the price of DOT could drop further from press time price levels.

Spot traders appear to have sparked the downtrend by moving their DOT holdings from private wallets to exchanges for sale. In fact, recent data shows a net inflow of $125.72 million worth of DOT into exchanges — a sign of strong selling interest.

Adding to the bearish sentiment is the massive liquidation of long positions in the market. In the past 24 hours, $1.21 million of long positions were liquidated, meaning that traders who were expecting an upward trend suffered significant losses.

Meanwhile, just $151,000 of short positions were closed, creating a clear imbalance that tilted the market strongly in favor of the bears.

DOT is expected to fall – where will it find support?

According to AMBCrypto’s technical analysis, DOT’s next potential support level can be found on the chart. In fact, the price action at press time suggests that the price will drop to $4.484, where it may find the support needed to move higher. If enough buy orders emerge at this level, DOT could surge by 73.39% to reach its target of $7.75.

If this support fails, DOT could fall further to the lower support of $3.940, where sufficient liquidity could push the price higher. However, it may need to consolidate at this level as it did previously.

Liquidity outflows indicate a possible DOT pullback

DOT’s Money Flow Index (MFI) and Chaikin Money Flow (CMF) indicators highlight a downward trend.

These technical indicators, which use volume and price to gauge market sentiment, remain positive despite the decline. At press time, the MFI reads 56.99, while the CMF flashes 0.20 – both in positive territory.

Although both MFI and CMF are in positive territory, their declines suggest a temporary pullback rather than a complete trend reversal. Therefore, although DOT’s press time price action appears bullish, the decline may be temporary and will be followed by a sustained rise.