Polkadot (DOT) extended its decline on Sunday as the altcoin continued trading under short-term pressure across major timeframes.

The token slipped about 1.22% during the past 24 hours, while weekly losses reached roughly 6.3% as broader crypto market weakness weighed on trader sentiment.

According to market data from CoinMarketCap, the token is trading at $1.47 with a 24-hour trading volume of approximately $124.09 million, marking an 8.58% decline in activity.

The asset’s market capitalization stands near $2.46 billion after a modest 1.2% daily drop as investors monitor key technical levels for potential trend direction.

Also Read: DOT Price Alert: Can Polkadot Bounce to $16 After 11% Dip?

Fibonacci Levels Shape DOT Recovery Setup

The 4-hour chart of Polkadot (DOT) shows a completed five-wave bearish structure that pushed the price toward the $1.05–$1.10 support zone in February.

This level marked Wave 5 exhaustion before a rebound. Price later climbed toward $1.60 resistance, signaling early recovery momentum after the corrective bottom.

According to the crypto analyst More Crypto Online, after the rebound, DOT has been moving in a Fibonacci retracement correction zone where traders are looking at a few key supports.

On the chart above, the key retracement levels include the 38.2% level at $1.468, the 50% level at $1.391, the 61.8% level at $1.318, and the 78.6% level at $1.220. Trading above the $1.31 to $1.39 zone will confirm the higher low pattern to sustain.

If the buyers hold the retracement zone and break through the $1.60 resistance level, the Fibonacci extension levels are indicated.

On the upside, the price milestones are at $2.766, $3.637, and $4.784, corresponding to the 38.2%, 50%, and 61.8% extension levels, respectively.

However, if the price falls below the $1.220 level, the bullish sentiment would weaken, allowing the price to fall towards the $1.05 macro demand zone.

RSI and MACD Show Weak Momentum

Moreover, the momentum signals on the weekly chart indicate a weak trend for the Polkadot token. The Relative Strength Index is currently at 33.37. The moving average of the Relative Strength Index is near 32.40.

The Relative Strength Index is still below the 50 mark. This shows that the sellers have the upper hand in the cryptocurrency market. A slight respite in the 30 to 35 range suggests that the trend might stabilize.

The MACD line is at -0.57925, the signal line is at -0.58644, and the histogram is at 0.00719. The positive histogram indicates a weakening of bearish pressures. However, the two lines remain negative.

Why This Matters

Polkadot trading in a range of $1.31 to $1.22 could determine if it continues to trade sideways or resumes its decline in the near future.

If a break above the $1.60 barrier is confirmed, it could mean a revival of the bulls and encourage more traders in the altcoin market to take notice.

Also Read: DOT Price Analysis: Analysts Highlight Critical Support & Potential for Growth