Polkadot hits KEY support – Assessing the odds of DOT’s bullish reversal

• Polkadot experienced a significant drop of over 32% in the past month, approaching the critical support level of $3.50.
• During this decline, trading volume surged by 50%, indicating intense selling pressure and a potential market capitulation.

After a 32% decline and the formation of three consecutive red candles, Polkadot [DOT] now finds itself at a crucial juncture.

The price has dipped close to $3.50, a historically significant level known to trigger bullish reversals in the past.

DOT’s Current Situation

Amid the recent market turbulence, analysts and experts have been offering bold predictions.

For instance, Crypto Catalysts, an analyst on X, suggested that the accumulation phase for DOT will soon culminate in a major rally.

Another prominent crypto expert, as seen on X, mentioned that they would consider going long on DOT once it surpasses the $5.20 mark.

Significant Outflow from Exchanges

Despite the bearish market conditions, on-chain analytics indicate that investors and long-term holders are accumulating DOT.

Over the last 24 hours, $1.6 million worth of DOT has been withdrawn from exchanges, suggesting a shift towards hodling and reducing immediate selling pressure.

Source: CoinGlass

Market Activity and Price Analysis

Currently trading at $3.56, DOT has seen a 3.10% decline today, with trading volume spiking by 50%.

This surge in volume during a downtrend indicates strong bearish sentiment, suggesting that sellers are dominating the market.

Technical analysis points out that DOT is hovering around a key level that has historically triggered price reversals.

Source: TradingView

If Polkadot manages to hold above $3.50, it could replicate past rallies that propelled it to the $5.00–$6.00 range.

However, the current geopolitical tensions between Israel and Iran, along with other external factors, could impact DOT’s price trajectory.

Should DOT fail to sustain above $3.50 and close below it, the asset might face further downside pressure.