Polkadot faces potential dip towards $1.18 amid fading momentum and broader crypto risks
Analysts warn that Polkadot might see a brief rally to $1.30 before dropping to $1.18 within two weeks, as technical and market indicators highlight increasing fragility and downward momentum.
Analysts warn that Polkadot might see a brief rally to $1.30 before dropping to $1.18 within two weeks, as technical and market indicators highlight increasing fragility and downward momentum.
Polkadot is once again under pressure, with one market analysis arguing that the token could stage a brief move towards $1.30 before sliding to about $1.18 within a fortnight. At the time of the assessment, DOT was trading near $1.26, far below its 200-day moving average, while momentum indicators pointed to a market that had lost direction rather than found a floor.
The case for caution is strengthened by the broader backdrop. Recent coverage from CoinMarketCap described DOT as slipping in a risk-off crypto environment, while CCN said the coin had already been trapped in a weakening structure marked by lower highs and lower lows. In both accounts, the wider market tone and thin demand for altcoins have amplified DOT’s fragility, leaving it vulnerable whenever Bitcoin stalls or sentiment turns defensive.
Derivatives positioning also appears uneasy. Blockchain.news said open interest had risen even as funding turned marginally negative, a combination that can suggest traders are leaning into downside exposure. It also said retail accounts were still heavily long, creating the sort of lopsided setup that can be punished if price briefly rebounds before breaking lower. The report described the recent range as tight, with weak volume and fading momentum, conditions that often precede a sharp move rather than a sustained recovery.
Technically, the picture remains bleak. CCN’s separate analysis pointed to DOT hovering near support after a steep drop, with indicators such as the Relative Strength Index and Money Flow Index still signalling persistent selling pressure. Another CoinMarketCap report said a prior rally had already lost momentum as the token failed to sustain gains, reinforcing the view that any bounce may be sold into unless trading volume improves decisively. For now, the balance of evidence suggests DOT remains in a vulnerable downtrend, with relief rallies looking more like trading opportunities than signs of a durable reversal.
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Source: Noah Wire Services