Polkadot Struggles to Bounce from the Crucial Support of $6: What Next for DOT Holders?

• Polkadot ($DOT) faces a bearish trend, struggling at $6 support amid market challenges.
• $DOT’s downward trajectory is likely to continue, the 4-hour chart shows bearish technical indicators.
• $DOT’s short-term bullish attempt is overshadowed by persistent bearish signals on the daily chart.

Polkadot ($DOT) is currently facing challenges in rebounding from the critical $6 support level, signaling a bearish outlook. The cryptocurrency is experiencing a sharp decline, with its value approaching new lows.

This steep fall is driven by widespread market instability, pessimistic investor outlook, and regulatory challenges. As $DOT’s price continues to diminish, investors are encouraged to prepare for additional decreases and reconsider their investment approaches in response to these negative indicators.

Analyzing Polkadot’s 1-Hour and 4-Hour Price Charts

On the 4-hour chart, $DOT’s price retraced following a departure from the prior bearish triangle formation and has resumed its downward trajectory. Despite attempts to ascend, it appears likely that the price will persist in falling.

The 4-hour Composite Trend Oscillator’s formation also indicates potential further declines for $DOT’s price. This prediction arises from the indicator’s signal line and Simple Moving Average (SMA) trending near the oversold territory.

On the daily chart, $DOT is making an effort for an upward move beneath the 100-day SMA after registering a bearish candlestick previously. The daily price pattern suggests that this upward attempt by $DOT may be short-lived.

Furthermore, the daily chart’s 1-day Composite Trend Oscillator confirms that $DOT’s price trend remains decidedly bearish, with both the signal line and SMA descending below the zero mark towards the oversold area.

At the time this was written, $DOT traded at $6.23, reflecting a decline of 3.69%. Its market capitalization was $8.95 billion, with a 24-hour trading volume of $97.1 million.

However, $DOT has achieved several milestones recently so, all is not lost. For instance, Polkadot ($DOT) ushered in $10 T RWA tokenization adoption in the beginning of the past trading week.