The post Polkadot Just Hit a Danger Zone! appeared on BitcoinEthereumNews.com.

Polkadot (DOT) has seen better days. Once hailed as a core layer-0 infrastructure token, its recent price action has left many traders on edge. As May 2025 unfolds, DOT is sitting at a critical support level after a multi-week consolidation and a sharp recent dip. With trading volume fluctuating and moving averages pointing downward, investors are asking : is DOT price preparing for a rebound, or will the support finally give way? Polkadot Price Prediction: Current Price Action and Market Structure DOT/USD 1 Hr Chart- TradingView As of the latest candle close, DOT is trading around $3.98, with hourly charts revealing sustained selling pressure. The price has decisively broken below the short-term support range around $4.10, and has lost grip of all key short-term moving averages (20, 50, and 100 SMA). The hourly 200 SMA, which often acts as the final defense for bullish momentum, is well above the price at $4.16 — now serving as stiff resistance. DOT/USD 1 Day Chart- TradingView On the daily chart, DOT price rejection from the 100 SMA (currently at $4.48) capped the recent rally. The 50 SMA is currently positioned at $4.06, and the price is now sitting just below it. This confluence suggests a weakening bullish structure with an increasing risk of further decline if DOT closes a few more candles below $4.00. Volume and ADL Analysis: Bearish Divergence Looking at the Accumulation/Distribution Line (ADL), DOT shows a concerning pattern. Despite slight upticks in price during late April, the ADL failed to make a corresponding higher high. This divergence signals that smart money may be exiting positions during price relief rallies. On the hourly chart, the ADL continues its slow descent, confirming that bearish sentiment is currently stronger than what surface-level price action suggests. Volume has also dried up, meaning there’s little…

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Filed under: News - @ May 4, 2025 5:19 pm