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Cryptocurrency News Articles

Polkadot (DOT) Price Prediction: Current Price Action and Market Structure

May 04, 2025 at 11:25 pm

Polkadot (DOT) has seen better days. Once hailed as a core layer-0 infrastructure token, its recent price action has left many traders on edge.

Polkadot (DOT) Price Prediction: Current Price Action and Market Structure

Polkadot (DOT) price has seen better days. Once touted as a core Layer-0 infrastructure token, its recent price action has left many traders on edge.

As May 12, 2025 unfolds, DOT is sitting at a critical support level after a multi-week consolidation and a sharp recent dip. With trading volume unfolding and moving averages pointing downward, investors are asking : is DOT price preparing for a rebound, or will the support finally give way?

Polkadot Price Prediction: Current Price Action and Market Structure

As of the latest candle close, DOT is trading around $3.98, with hourly charts revealing sustained selling pressure. The price has decisively broken below the short-term support range around $4.10, and has lost grip of all key short-term moving averages (20, 50, and 100 SMA). The hourly 200 SMA, which often acts as the final defense for bullish momentum, is well above the price at $4.16 — now serving as stiff resistance.

On the daily chart, DOT price rejection from the 100 SMA (currently at $4.48) capped the recent rally. The 50 SMA is currently positioned at $4.06, and the price is now sitting just below it. This confluence suggests a weakening bullish structure with an increasing risk of further decline if DOT closes a few more candles below $4.00.

Volume and ADL Analysis: Bearish Divergence

Looking at the Accumulation/Distribution Line (ADL), DOT shows a concerning pattern. Despite slight upticks in price during late April, the ADL failed to make a corresponding higher high. This divergence signals that smart money may be exiting positions during price relief rallies. On the hourly chart, the ADL continues its slow descent, confirming that bearish sentiment is currently stronger than what surface-level price action suggests.

Volume has also dried up, meaning there's little conviction from buyers to defend the $4 mark. Unless a catalyst emerges to spike demand, this stagnation may lead to a stronger downside move in the coming sessions.

Key Support and Resistance Levels

Polkadot Price Prediction: Bounce or Breakdown?

The broader chart structure indicates that Polkadot price is at a decision point. If DOT price loses the $3.90 support with volume, it could swiftly drop to $3.60 or even test $3.30 — a level not seen since Q1 2023. However, if bulls manage to reclaim $4.10 and sustain above the 50 and 100 daily SMA, a short-term rally to $4.50 or even $5.00 becomes plausible, especially if the crypto market as a whole regains momentum.

Momentum indicators on lower timeframes hint at a possible oversold bounce, but without volume confirmation, any relief may be short-lived.

Polkadot Price May Outlook

May could be make-or-break for DOT price. The current technical landscape suggests caution, as Polkadot price is at risk of losing its footing. However, these conditions also often precede strong reversal rallies — if bulls show up. A decisive reclaim of $4.10 would flip the script in favor of buyers, while sustained weakness below $3.90 could open the floodgates for deeper losses.

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Other articles published on May 05, 2025