---
title: "Polkadot Price Analysis: DOT Tumbles 7% Weekly but the Bulls May Be Staging a Comeback"
url: https://diffcoin.com/polkadot-price-analysis-dot-tumbles-7-weekly-but-the-bulls-may-be-staging-a-comeback/
description: "Polkadot’s price has been dropping rapidly over the last couple of months and is yet to show any sign of slowing down. However, the cryptocurrency might"
published: 2024-05-01
updated: 2024-05-01
author: "Mila"
site: "Diffcoin"
---

# Polkadot Price Analysis: DOT Tumbles 7% Weekly but the Bulls May Be Staging a Comeback

Polkadot’s price has been dropping rapidly over the last couple of months and is yet to show any sign of slowing down. However, the cryptocurrency might soon begin a bullish rebound.

## **Technical Analysis**

By TradingRage

### **The Daily Chart**

On the daily chart, the price has been on an aggressive decline since a rejection from the $12 resistance level. The market has also broken below the bullish trendline that has been formed since October 2023.

The 200-day moving average, located around the $7 mark has also been broken down, with the price seemingly targeting the $4 support zone.

With the Relative Strength Index also showing values below 50%, the momentum is in favor of a further bearish continuation.

![dot_price_analysis_chart_0105241](https://cryptopotato.com/wp-content/uploads/2024/05/DOTUSDT-Daily-May-1-2024-scaled.jpg)

Source: TradingView

### **The 4-Hour Chart**

The 4-hour chart paints a much more clear picture of the recent price action. The market is seemingly forming an ascending channel pattern at the moment.

These formations are normally considered bearish continuation patterns inside a larger downtrend.

Therefore, if the channel breaks down, the market would be more likely to crash toward the $4 support zone. On the other hand, a breakout above the channel can completely overturn the scenario, and the market could begin a bullish trend.

Therefore, the short-term fate of the market relies heavily on whether the channel is broken to the upside or downside.

![dot_price_analysis_chart_0105242](https://cryptopotato.com/wp-content/uploads/2024/05/DOTUSDT-4H-May-1-2024-scaled.jpg)

Source: TradingView

## **Sentiment Analysis**

By TradingRage

### **Polkadot Liquidation Heatmap**

While the technical analysis of the DOT price chart suggests that we are in a clear bearish trend, the futures market data hints at a potential rebound in the short term.

This chart demonstrates the Binance DOT/USDT pair’s liquidation heatmap. It is evident that tons of liquidity were located below the $6.5 level, which the price has recently dropped below. Therefore, it could be interpreted that the demand has absorbed this supply as the market is not dropping lower anymore.

Currently, a potential liquidity pool for the price to target is located above the $7 level. As a result, the price could at least experience a short-term pullback toward this level.

![dot_usdt_liquidation_chart_0105241](https://cryptopotato.com/wp-content/uploads/2024/05/Binance-DOT_USDT-Liquidation-Heatmap-May-1-2024-scaled.jpg)

Source: Coinglass

The post Polkadot Price Analysis: DOT Tumbles 7% Weekly but the Bulls May Be Staging a Comeback appeared first on CryptoPotato.

[Source link](https://cryptopotato.com/polkadot-price-analysis-dot-tumbles-7-weekly-but-the-bulls-may-be-staging-a-comeback/)