Polkadot hits KEY support – Assessing the odds of DOT’s bullish reversal

• Polkadot fell over 32% in a month and hovered near the crucial $3.50 support level.
• Trading volume surged 50% during the drop, signaling aggressive exits or potential capitulation.

Polkadot [DOT] finds itself at a tipping point after dropping 32% this month and forming three consecutive red candles.

Price has now landed near $3.50—a historically reactive level that has repeatedly triggered bullish reversals.

DOT is at its lowest support, so does that mean…

Given the current market sentiment, analysts, and experts have been making bold predictions.

Crypto Catalysts, a market analyst on X (foremrly Twitter), stated that,

“DOT accumulation phase will end soon with a massive rally.”

The post also noted that the asset was sitting at the lowest weekly support zone.

Meanwhile, another well-followed crypto expert shared his thoughts, stating that he would go long on DOT once it moves above the $5.20 level.

Such strong conviction from the expert further strengthens the asset’s bullish outlook.

$1.60 million worth of DOT leaves exchanges

Despite the bearish market structure, investors and long-term holders appear to be aligning with expert views, as they have potentially begun accumulating the token, according to the on-chain analytics tool CoinGlass.

DOT saw a $1.6 million net outflow from exchanges over the last 24 hours.

This movement suggests investors might be moving tokens off exchanges to accumulate, potentially reducing near-term sell pressure.

Source: CoinGlass

Despite Polkadot’s price drop, traders are still active

At press time, DOT traded at $3.56, down 3.10% on the day.

Interestingly, Trading Volume spiked 50% within the same period, suggesting high investor participation even as the price declined.

This surge in Trading Volume during a price dip indicates strong bearish sentiment, highlighting that sellers are dominating the market and investors may be exiting their positions in anticipation of further declines.

AMBCrypto’s technical analysis shows that DOT was sitting at the same key level that sparked reversals in mid-2023 and late-2024.

Source: TradingView

If the token holds above $3.50, it could mimic past rallies that propelled it back to the $5.00–$6.00 range.

On the other hand, the sentiment is different this time, as tensions between Israel and Iran appear to be escalating, with the U.S. President seemingly warning Iran.

If the ongoing conflict intensifies and DOT fails to hold the $3.50 level, closing a daily candle below it, there is a strong possibility the asset could drop significantly, as there is no major support below this level.