While the broader crypto markets attempt to regain their footing after a painful bear run, Polkadot isn’t following the script. Polkadot (DOT) has failed to join in on the nascent recovery, with its price action signaling trouble ahead.
DOT has printed some substantial green candles since hitting 2022 lows in mid-October. However, the token has repeatedly struggled to reclaim double-digit prices despite broader market tailwinds.
This suggests weakening momentum that has traders concerned about a potential trend reversal and retest of support. Adding to worries is fading trading volume amid DOT’s sideways grind.
Polkadot struggle comes after a relief rally
The recent struggles come after DOT logged a significant relief rally off its October bottom. The advance briefly put Polkadot back above its key ascending trendline, which had provided reliable support.
However, multiple rejections around the $10 level have since driven the price decisively below its 20-day moving average. DOT now faces a dropping relative strength index (RSI), indicating fading upside momentum.
With DOT appearing vulnerable after defending for so long, analysts caution the token could now breakdown below support around the $7 mark. That could open the door to a more significant capitulation toward range lows.
The technical picture suggests strong headwinds for Polkadot as it diverges from broader market optimism. If the top 10-ranked token fails to reclaim its former ascent, traders may look for lower levels to scoop up discounted DOT.
For now, the pendulum seems tilted toward the bears until there is a swift and sharp reversal upward. A key Polkadot test will be whether the bulls can drive a period-month close back above the pivotal $6.70–7.00 zone.