Polkadot price analysis (Bearish) — 2.90 USDT (-5.42% 24h)

DOT is showing concerning weakness after a 5.4% decline to $2.895, though it’s holding just above the 20-day SMA at $2.875. The current price sitting between the 20-day support and 50-day resistance at $3.00 suggests consolidation, but the breakdown below the psychologically important $3.00 level raises red flags. RSI at 61.6 indicates DOT isn’t oversold yet, leaving room for further downside. Trading volume of $29.4 million shows decent participation in the move lower. Traders should watch the $2.87 level closely – a decisive break below could trigger additional selling toward $2.75. For now, I’d recommend waiting for either a reclaim of $3.00 with volume or a clear breakdown below $2.87 before taking new positions. Risk management is crucial given the elevated volatility reading of 3.63%. Consider scaling into positions rather than going all-in given the current uncertainty.