Polkadot price analysis (Neutral) — 2.97 USDT (-0.40% 24h)

DOT is showing extreme oversold conditions with an RSI of 13.85, far below the traditional 30 oversold threshold. The current price of $2.973 sits below both the 20-day SMA ($3.055) and 50-day SMA ($3.056), indicating persistent bearish momentum. However, the 24-hour decline of -0.402% appears relatively modest given the extreme RSI reading, suggesting selling pressure may be exhausting. Volume remains substantial at $26.5 million, providing adequate liquidity. For traders, this presents a potential contrarian opportunity – consider scaling into long positions with tight stop losses below $2.90. The extreme RSI divergence suggests a technical bounce could materialize soon, though volatility remains elevated at 4.46%. Risk management is crucial given the current bearish structure. Wait for confirmation of reversal patterns before committing larger positions.