Polkadot price analysis (Bearish) — 3.15 USDT (-3.97% 24h)

DOT is showing concerning technical signals as it trades at $3.145, down nearly 4% in the past 24 hours. The RSI reading of 20.26 indicates severely oversold conditions, typically suggesting potential for a short-term bounce. However, price remains below both the 20-day SMA ($3.32) and 50-day SMA ($3.24), confirming the bearish trend structure. Trading volume of $52 million suggests moderate participation in the current move. The high volatility reading of 11.4% indicates significant price swings, creating both risk and opportunity. For traders, consider waiting for RSI to recover above 30 before entering long positions, with tight stops below $3.00. Resistance sits near the $3.30-3.35 zone where the moving averages converge. Given the oversold conditions, aggressive traders might scale into small long positions here, but conservative traders should wait for confirmation of trend reversal.