Polkadot Price Prediction : Is $DOT Set for a Rebound or Further Decline?

[Cryptowarrior]

Polkadot ($DOT) had a turbulent week, with Polkadot Price dropping below a crucial support level on Friday, reaching $3.82 before climbing back above $4. The key question is: Can $DOT maintain its position?

$DOT’s Battle with Support Levels

Polkadot has struggled recently to hold its support levels. Earlier in August, $DOT lost its $5 price mark, falling to a multi-year low of $3.62. Although the coin briefly rebounded above $5, reaching $5.11 on August 24, it soon fell back to the $4 range, hitting a low of $3.82 on Friday.

Rebounding Above $4: A Sign of Strength?

Polkadot ended the previous week slightly above $4 at $4.07. As the new week began, $DOT rebounded, rising 3.44% to $4.21 on Monday, driven by demand at lower prices. However, sellers quickly regained control, and the price dropped to $4.07 on Tuesday. The downward pressure continued on Wednesday, pushing $DOT to $3.88. Strong demand helped $DOT recover and close at $4.11, but the trend didn’t hold, and $DOT fell to $4.02 on Thursday.

On Friday, sellers pushed the price below $4 to $3.82. Although buyers managed to counter some of the pressure, $DOT closed at $3.96.

Saturday's Recovery and Current Status

Saturday saw a slight recovery, with $DOT closing at $4.07. As of now, $DOT is trading at $4.15 as per Coinpedia Markets data.

What’s Next for $DOT?

$DOT finds strong support at $4, a level tested twice during the week. Buyers have defended this support so far, but if $4 is breached, $DOT could fall to its multi-year low of $3.62.

Currently, $DOT is consolidating above $4. If buyers can sustain the momentum, $DOT might push above its 20-day SMA and towards $4.50. However, given the recent volatility, $DOT’s future remains uncertain.