Polkadot Tests Key Support at 3.91 as Technical Indicators Signal Neutral to Bearish Momentum EXCERPT: DOT trades at $3.91 with a 0.79% daily decline, testing critical support levels while technical indicators suggest continued sideways pressure below key moving averages. CONTENT: Market Overview Polkadot's native token DOT is currently trading at $3.91, marking a 0.79% decline over the past 24 hours within a trading range of $3.81 to $3.94. The cryptocurrency finds itself positioned below all major moving averages, with the 20-day simple moving average at $4.14 representing the nearest resistance level. Trading volume of $14.7 million indicates moderate market participation as the token consolidates near multi-week support zones. Technical Picture The technical landscape for DOT presents a mixed but slightly bearish outlook. The Relative Strength Index sits at 44.5, indicating neutral momentum with no immediate oversold or overbought conditions. However, the MACD histogram reading of -0.0376 confirms bearish momentum, suggesting selling pressure continues to outweigh buying interest. DOT price action remains constrained below the 20-day SMA at $4.14, representing a 5.7% gap that has proven difficult to close. The 50-day moving average at $4.02 and 200-day average at $4.03 create additional resistance clusters, forming a significant technical ceiling between $4.02 and $4.14. This configuration typically indicates that any recovery attempts may face substantial selling pressure. Critical Levels to Watch The immediate support zone centers around $3.89, which serves as the daily pivot point and has provided recent buying interest. A break below this level would expose the stronger support at $3.77, coinciding with recent session lows and representing a critical technical floor. On the downside, $3.61 emerges as the next major support if the current range breaks down, potentially triggering accelerated selling toward lower time frame targets. Conversely, any meaningful recovery must first reclaim the $4.02-$4.14 resistance cluster, with $4.88 representing the next significant upside target should bullish momentum return. The narrow trading range between $3.81 and $3.94 suggests a period of consolidation, but the bearish MACD signal indicates this consolidation may resolve to the downside without substantial buying volume. Market Sentiment Recent governance developments within the Polkadot ecosystem show continued network activity, with multiple referendums passing including treasury management initiatives and infrastructure funding proposals. Referendum 1729's approval for USDT and USDC acquisition by the Polkadot Treasury demonstrates ongoing institutional preparation, though these developments have yet to translate into significant price momentum. The relatively stable trading volume around $14.7 million suggests neither aggressive accumulation nor distribution, indicating market participants remain in a wait-and-see mode regarding DOT's next directional move. Trading Perspective Current risk-reward dynamics favor cautious positioning given the proximity to support levels. Short-term traders might consider the $3.77-$3.89 range as a potential buying zone, with stops below $3.61 to limit downside exposure. The resistance cluster between $4.02-$4.14 provides clear profit-taking levels for any bounce attempts. For swing traders, a decisive break above $4.14 with accompanying volume would signal a potential trend reversal, targeting the $4.88 resistance level. Conversely, a breakdown below $3.77 could accelerate selling pressure toward the $3.61 support zone, offering short-term bearish opportunities with tight risk management above $3.89. Bottom Line DOT remains range-bound below key moving averages with bearish momentum indicators suggesting continued downside pressure unless buying volume emerges near current support levels around $3.89. For the latest DOT price updates and Polkadot analysis, monitor key support and resistance levels mentioned above.