Polkadot price analysis (Bearish) — 2.91 USDT (-1.05% 24h)

DOT is showing concerning technical signals as it trades at $2.906, down 1.06% over the past 24 hours. The current price sits below both the 20-day SMA ($2.924) and 50-day SMA ($2.913), indicating bearish momentum in the short to medium term. The RSI reading of 38.89 suggests DOT is approaching oversold territory but hasn’t reached extreme levels yet. Trading volume of $10.9 million appears moderate, while volatility remains elevated at 4.9%, creating potential for sharp moves. For traders, consider waiting for a confirmed break above the 20-day SMA before entering long positions. Alternatively, a break below $2.85 could signal further downside toward $2.75 support. Risk management is crucial given the current volatility – position sizing should account for potential 5-7% swings. The convergence of price below key moving averages suggests caution is warranted despite nearing oversold conditions.