Polkadot price analysis (Bearish) — 2.91 USDT (-8.21% 24h)

DOT is showing significant technical weakness after an 8.2% decline over the past 24 hours, with price currently trading at $2.908. The RSI reading of 28.75 indicates the asset is deeply oversold, suggesting potential for a near-term bounce. However, DOT remains below both the 20-day SMA ($3.042) and 50-day SMA ($3.122), confirming the bearish momentum structure. Volume remains elevated at $38.9 million, indicating strong institutional interest despite the price decline. The high volatility reading of 11.57% suggests traders should expect continued price swings. For active traders, consider scaling into long positions between $2.85-$2.95 with tight stop losses, targeting a retest of the $3.10 resistance level. Position traders should wait for a confirmed break above the 20-day SMA before establishing larger positions. Risk management remains crucial given the elevated volatility environment.