Polkadot Remains Under Pressure but Signs of Exhaustion Emerge

Polkadot’s DOT token continues to trade under sustained pressure on the daily timeframe, with recent price action reflecting a market that is struggling to establish directional conviction. 

Although selling momentum has eased slightly, the broader structure still favors the downside, as the price remains capped beneath key trend-defining levels. Until buyers demonstrate stronger follow-through, DOT’s recovery attempts appear corrective rather than the start of a new trend.

Trend Structure Signals Ongoing Bearish Control

DOT remains below its short-term and medium-term moving averages, a configuration that typically confirms a bearish market environment. 

Daily chart for DOT/USDT (Source: TradingView)

Those averages continue to slope downward, reinforcing the idea that sellers retain control of the broader trend. 

For sentiment to shift meaningfully, the crypto would need to reclaim these dynamic resistance levels and hold above them on a closing basis. 

Without that confirmation, rallies are likely to be viewed as opportunities for distribution rather than accumulation.

Polkadot Momentum Indicators Suggest Selling Pressure Is Slowing

Momentum readings indicate that bearish pressure, while still dominant, is gradually losing intensity. 

The MACD remains in negative territory, confirming that downside momentum is still present, but the improving histogram suggests the pace of selling is easing. This type of setup often precedes consolidation or short-lived relief rallies rather than a full trend reversal. 

A decisive shift would require stronger bullish momentum and sustained buying interest.

RSI Reflects Weak Demand Rather Than Panic Selling

The Relative Strength Index continues to hover in the lower range, signaling that Polkadot is approaching oversold conditions without entering extreme territory. This implies that sellers are in control, but panic-driven liquidation has not yet materialized. 

Historically, that type of RSI behavior tends to favor sideways movement or modest bounces rather than aggressive reversals, unless accompanied by a clear improvement in volume and price structure.

Key Resistance Zones Could Define Any Recovery Attempt

On the upside, Polkadot faces layered resistance that could limit recovery attempts. The first major barrier sits around $2.29, where prior selling pressure and technical resistance converge. 

A sustained break above this level would expose the market to a move toward $2.36, though sellers are likely to defend that zone aggressively. A broader trend shift would only become likely if DOT can reclaim the higher resistance region near $3.19, which currently represents a major structural ceiling.

Order Book Data Highlights Where Liquidity Is Concentrated

Order book analysis reveals significant liquidity zones that could influence DOT’s next move. 

On the ask side, a notable sell wall near $2.10 suggests that buyers must absorb substantial supply before any upside acceleration can occur. Clearing this area could allow the price to advance toward higher resistance zones, improving short-term sentiment. Larger ask-side liquidity near $3.00 highlights where profit-taking would likely intensify during a stronger rally.

On the downside, large bid walls are positioned much lower, indicating where long-term buyers may step in if selling pressure accelerates. These deep liquidity pockets suggest downside protection exists, but only after substantial declines, emphasizing the elevated risk for late long entries in the current structure.

Potential Long and Short Trade Scenarios

From a trading perspective, bullish setups remain speculative until the crypto reclaims near-term resistance with conviction. More conservative long strategies may focus on confirmed daily closes above resistance, followed by pullbacks that hold as support. Short-term longs could target incremental resistance zones, but risk management remains critical given the prevailing trend.

For bearish traders, rallies into resistance continue to offer potential short opportunities as long as momentum indicators fail to confirm a trend reversal. A sustained move above the higher resistance band would weaken the bearish case and force reassessment of downside expectations.

Market Outlook Remains Cautious

Overall, Polkadot’s daily chart suggests a market in transition but not yet in recovery. While selling pressure is easing, technical confirmation of a bullish reversal remains absent. 

Until key resistance levels are reclaimed, Polkadot is likely to remain vulnerable to renewed downside or extended consolidation.

Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.