Polkadot (DOT) Plummets 11%—Can It Quickly Bounce Back to $20? 🔥🔥🔥

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Polkadot (DOT) Drops 11.62% in 24 Hours

Polkadot (DOT) has seen a significant price decline of 11.62% in the last 24 hours, dropping to $6.85, accompanied by a trading volume of $619 million. Despite this, the cryptocurrency has achieved a 4.17% increase over the past week. Currently, Polkadot's market capitalization is approximately $10.388 billion, with a circulating supply of 1.5 billion DOT.

In the past 24 hours, the price of DOT fluctuated between $6.72 and $7.84, while over the week, it ranged from $6.6 to $7.88.

Technical Indicators Show Downward Trend

Technical analysis of the DOT/USDT trading pair reveals a bearish market. The price has fallen below the 20-day moving average ($7.18), with the Bollinger Bands indicating a downward trend, support at $6.5, and resistance around $7.18 and $8.

The Relative Strength Index (RSI) is currently at 41.88, indicating that selling pressure remains dominant, below the neutral level of 50. If the RSI further declines to the 30 range, selling pressure may intensify.

The Awesome Oscillator (AO) also shows negative momentum, with a bearish histogram value of -0.45, suggesting a potential continuation of the downtrend.

Liquidations Intensify Selling

According to Coinglass data, the number of long liquidations has surged, with long positions liquidated totaling $1.23 million, while short positions were only liquidated for $66,900. This imbalance in liquidations has exacerbated the decline in DOT prices, forcing leveraged traders to close their positions.

Binance and Bybit recorded the largest liquidation amounts, reaching $342,800 and $503,300, respectively. At the same time, trading volume increased by 84.96%, reaching $994 million, while open contracts decreased by 11.47%, to $476 million.

Market Cap Exceeds $10 Billion, but Mid-Term Target Remains $20. The consolidation above the 50-day EMA and the recent test of a surge may indicate future growth, consistent with Fibonacci levels 0.5 and 0.618.

Market participants will closely monitor DOT's price movements, especially near the $6.5 support level, to determine whether the bearish trend will reverse or continue.

What are the key support and resistance levels for DOT? Support at $6.5, resistance at $7.18 and $8.

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