The post Polkadot hits oversold extremes: is a rebound imminent? appeared on BitcoinEthereumNews.com.

Polkadot is approaching extreme oversold conditions after a relentless downtrend. With RSI nearing historic lows and price resting on major liquidity, a reversal rally could be on the horizon. Polkadot (DOT) has endured a steep and persistent downtrend, with its price sliding from $7.67 to a fresh swing low near $3.25. This prolonged decline has pushed the asset into oversold territory on key indicators like the RSI, sparking interest in a potential reversal setup. The market is now watching to see whether a bottoming structure will emerge at these critical levels. Key technical points Swing Low Support: Around $3.25, major resting liquidity High Time Frame Support: $3.75 — a reclaim level to confirm bullish intent Resistance Zone: $5 region, aligned with value area high RSI Signal: Approaching historical lows, previously led to local rallies Volume Behavior: Low during recent sell-off, indicating potential capitulation DOTUSDT (1D) Chart, Source: TradingView DOT’s bearish structure began at the $7.67 level and has continued unbroken for weeks, culminating in the formation of a new swing low around $3.25. This level is now a key point of interest, as it represents an area of resting liquidity that often draws price action before a reversal. Since reaching this low, DOT staged a brief oversold rally, tapping into resistance at the $5 mark, a level now reinforced by its confluence with the value area high. However, that bounce was short-lived, and price action has returned to the lows, where sentiment remains notably bearish. Despite this, technical indicators suggest exhaustion in the trend. The RSI is now flirting with historical lows, regions that have previously triggered impulsive, albeit short-lived, rallies. These typically occur once price forms a bottoming structure or triggers a liquidity sweep below key levels. The current scenario sets the stage for a potential swing failure pattern.…

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Filed under: News - @ June 21, 2025 12:28 am