DOT Price Watch: Polkadot Tests Key Moving Averages After 4.5% Daily Decline
The post DOT Price Watch: Polkadot Tests Key Moving Averages After 4.5% Daily Decline appeared on BitcoinEthereumNews.com.
Rongchai Wang Oct 08, 2025 13:21 Polkadot trades at $4.15 following a 4.49% decline, positioning above all major moving averages with neutral RSI suggesting potential reversal opportunity. The Setup Polkadot currently trades at $4.15, down 4.49% in the past 24 hours after testing a daily low of $4.06. Despite the decline, DOT maintains its position above key moving averages, trading 0.9% above the 20-period SMA at $4.11, 2.1% above the 50-period SMA at $4.06, and 3.0% above the 200-period SMA at $4.03. The technical picture presents a compelling risk-reward scenario with DOT price holding above critical support levels while showing signs of oversold conditions. The RSI reading of 50.8 indicates neutral momentum, suggesting the recent selling pressure may be nearing exhaustion. The MACD remains bullish with a positive histogram reading of 0.0101, indicating underlying momentum strength despite the daily decline. This setup offers traders a favorable 2:1 risk-reward ratio with clear technical levels for both entry and exit strategies. Entry Strategy The primary entry zone sits between $4.06-$4.11, targeting the confluence of the 50-period SMA and the daily low. This area represents strong technical support where buyers previously stepped in during the overnight session. Confirmation signals include a bullish divergence on shorter timeframes, volume expansion on any bounce from the $4.06 level, or a decisive break back above the 20-period SMA at $4.11. Traders should wait for at least one of these confirmation signals before establishing positions. An alternative entry strategy involves waiting for a pullback to the $4.03 level, where the 200-period SMA provides additional support. This approach offers better risk-reward but requires patience as DOT/USDT may not reach this level if buying pressure emerges at higher levels. Risk Management Stop loss placement should occur below the 200-period SMA at $4.00,…
