Will Death Destroy Polkadot (DOT) Prices?

The price of Polkadot (DOT) has failed in its recent attempt to recover, the altcoin has undergone a correction of more than 12% in the last two days.

This decline puts DOT closer to a bearish event that could further affect its prices.

Polkadot needs a bully round

Currently trading below $9, Polkadot is trying to recover, although the chances of a recovery seem slim. The token price is significantly lower than October 2023 levels.

Despite a recent rally, DOT has not returned to the highs seen last year, which could discourage new investors from entering the market, limiting the asset's potential for recovery.

Current market dynamics indicate that Polkadot faces more bearish than bullish effects. The Relative Strength Index (RSI)—a momentum oscillator that measures the speed and volatility of price movements—is in a bearish zone, indicating that the asset is still below the neutral level of 50.

This suggests that unless market sentiment changes or investor bullishness increases, DOT's recovery is likely to be slow.

DOT Price Forecast: Probably Bearish

Currently, Polkadot is experiencing a death cross on the 4-hour chart, trading at $8.63. A death cross, characterized by the crossing of the 50-day exponential moving average (EMA) below the 200-day EMA, indicates potential bearish sentiment and the possibility of a downward trend reversal.

If there is a lack of bearish indicators, this means that Polkadot may fail in its recovery attempt and the price may drop to $8 or below as the price recovers to $8.10.

Read More: Polkadot (DOT) Price Prediction 2024/2025/2030

However, if the market conditions turn favorable, avoiding a death cross, there is a possibility that DOT will go above $9. This reversal allows Polkadot to establish $9.63 as a new support level, which hints at an optimistic outlook for the future.