Polkadot (DOT) Delivers Upside Following Bearish Run – Here’s What to Consider

Polkadot registered an impressive 6% surge on May 1 after ending April’s bearishness that had the token extending downside. The leg-up may show the alt plans substantial upside rallies. Nevertheless, the current price performance shows current uncertainty holding the alt back.

For now, DOT trades around the $15.23 mark, dropping 36% from the April peaks, transacting to an attractive discount. Such narrative poises the alt for attractive uptrends and analyzing the market shows significant accumulations after the token plummeted towards April’s lowest level at $14.18.

FIB retracement zones show price levels to consider during Polkadot’s upside rebound. They comprise $16.57 at the 0.236 FIB level, $17.9 matching the 0.382 FIB line, and the $19.16 area, aligning with the 0.5 FIB area.

The Relative Strength Index’s drop into the oversold region supports the bounce-back expectations for Polkadot. Also, accumulation at the latest lows backs the narrative. The DIM shows the prevailing doubt whether the Sunday uptick by DOGE welcomed a bullish move or paused a continuing bearish regime.

Unclear Road Ahead

On-chain metrics also show the uncertainty with Polkadot price bias. The overall supply held by DOT whales stayed at its lowest levels over the past four weeks. The metric is yet to yield upticks, showing large wallet investors aren’t accumulating yet.

Also, the Binance derivative financing rate hovers at 4-week lows, and these metrics depict investors’ lack of confidence in DOT’s price performance.

Furthermore, DOT seems to meet roadblocks after rallying towards $15.52. The rejection at this mark saw Polkadot sliding towards the lows of $14.65 before recovering. While publishing this content, DOT traded at $15.07.

Also, struggles in the broad market sentiment might weigh on Polkadot price action. Bitcoin fails to reclaim the $40,000 area, trading around $38,501 at this publication.

Final Thought

The prevailing market situation remains crucial in Polkadot’s ability to rally upward in the coming few days. However, uncertainty and fear seem to hold the token back. And that might increase the probability of more declines. Meanwhile, accumulation around the lower levels might limit the intensity of any possible crash by DOT.

By Edward Richardson
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