Polkadot Price Forecast: DOT likely to slide to $3.70 as weekend rally fizzles out

Polkadot price trades below a declining trend line for the third consecutive month.
A decisive flip of the $3.90 level will trigger an uptrend, but a rejection could knock DOT lower.
A pullback to $3.70 is likely to come first before a retest of $4, $4.20 and $4.31 barriers.

Akash Girimath FXStreet

Polkadot (DOT) price has been producing lower lows for nearly three months and shows no signs of breaking out. But as DOT trades around the $4 psychological level, investors should note that the possibility of a volatile move.

Also read: Polkadot Price Forecast: DOT confirms trend reversal, eyes retest of $5 after reclaiming key hurdle

Polkadot price needs a pullback

Polkadot (DOT) price has encountered the $3.90 resistance level after a 7.45% upswing in the last three days. At this crossroads, DOT will face a decision if it overcomes the immediate hurdle and goes higher or faces selling pressure and slides lower.

Considering the Relative Strength Index (RSI) and its position below the 50 level, the chances of rejection are higher. As a result, investors should expect a minor pullback to $3.70 from Polkadot price. Around this level, DOT is likely to consolidate; based on the sidelined buyers that pour in, an uptrend is likely to begin.

But if the bullish weekend rally fizzles out, the resulting bounce is likely going to be weak, causing Polkadot price to stay capped below $3.90. In some cases, DOT could slide below $3.70 and revisit the $3.50 and $3 psychological level.

DOT/USDT 1-day chart

On the other hand, if Polkadot price flips the $3.90 hurdle into a support floor, it will invalidate the bearish outlook. In such a case, DOT will likely extend its rally and tag the $4.20 and $4.31 barriers

Also read: Solana has a good chance of being 2024’s best performer

Author

Akash Girimath

FXStreet

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.