Polkadot drops below $10 as bears target $7.09

Polkadot (CRYPTO:DOT) experienced a significant bullish surge earlier in November, rallying 185% from a low of $3.7 to surpass $10, fueled by Bitcoin’s (CRYPTO:BTC) upward momentum.

However, bears quickly began pulling back these gains as Bitcoin prices slid, affecting broader market sentiment.

In early November, DOT prices climbed to $5.7 before retracing to $4.75, consolidating under $6. This consolidation allowed bulls to regroup for another rally.

Between November 22 and 24, DOT saw a remarkable 77% rally, propelling its price higher.

Despite this strength, DOT has retraced a portion of those gains over the past few days, trading at $7.87 at the time of writing.

The Accumulation/Distribution (A/D) indicator showed strong demand for DOT, continuing to climb despite the price drop.

Additionally, the Money Flow Index (MFI) did not exhibit bearish divergence, signaling that sell-side pressure was not yet dominant.

As Bitcoin approaches its $90,000 support zone, the likelihood of further altcoin setbacks increases, putting pressure on Polkadot and other tokens.

If the market continues to decline, Polkadot could dip toward key Fibonacci retracement levels at $7.09 and $6.285, presenting a potential buying opportunity for long-term investors.

While the short-term outlook for DOT appears bearish due to broader market trends, the continued demand shown by the A/D indicator suggests underlying confidence in the token.

Traders may look to accumulate DOT at lower levels if it reaches key retracement zones, particularly if Bitcoin stabilizes near its support levels.

Polkadot’s recent movements underscore the interplay between Bitcoin’s price action and altcoin performance, reminding investors of the volatility and opportunities in the current market.

At the time of reporting, Polkadot price was $8.04.