🔥 Polkadot (#DOT ) Price Showing Reversal: $5 Coming Soon?

Polkadot (DOT) saw a remarkable pullback and reverted the gains from the 52-week low mark this week. The DOT token traded in a significant downtrend and was corrected by 40% in the last two months.

The token managed the gains amid the significant recovery and noted a three-day recovery streak. Due to the prolonged decline, the DOT price has breached its major demand zone of $5. It slipped below that zone.

At press time, the Polkadot‘s DOT token traded at $4.72 with an intraday surge of 2.36%. It reflected neutrality on the charts. It has a monthly return ratio of -1.90% and 1.20% yearly, indicating long consolidation.

Polkadot’s DOT traded under the bearish influence and is capped inside a falling channel, delivering the lower low swings. Looking at the price action, the sellers continued to dominate and persist in putting pressure on the bulls.

🔸 Could #Polkadot ’s DOT Stretch a Recovery?

The daily chart of the Polkadot token has shown a bullish overturn from the recent correction. The bulls were eyeing to stretch the recovery toward the $5 mark. Aiming to retain the gains, a significant short-covering move was noted on the chart.

Until the token crosses the $7 mark, it may continue to drive bearish movements and be capped inside a significant range. Above the $7 mark, the token can pave the gains and trigger an upmove ahead.

The RSI curve saw a rebound from the oversold region and suggested a potential reversal might be on the horizon. It might lift the price further.

AMCryptoAlex, in his tweet, said that DOT had made a rounding bottom formation and saw a pullback from its downward region.

💬 $DOT reached almost 1yr low yesterday
The last time DOT was this low, it pumped 200% in 6 months
Will it happen again? — AMCrypto

The correction in DOT price is due to the recent bearish market sentiments and the fear among the long traders. Still, the classic on-chain metrics highlighted a negative move and conveyed the bearish stance.