Polkadot Tests Support at $3.60 Amid Mixed Technical Signals and Bullish Catalyst

I observe that Polkadot ($DOT) is currently testing the $3.60 support level, which suggests a cautious outlook as technical indicators are sending mixed signals. While the price remains around $3.63, the presence of bearish momentum indicators indicates there could be downside pressure in the near term. However, the proposed deflationary model by Gavin Wood offers a possible bullish catalyst that could trigger a reversal. This combination of technical weakness and fundamental positive developments makes Polkadot a nuanced investment case, requiring close monitoring of price action and project updates. The technical setup shows indecision, with the price just above critical support but facing downward momentum signs. The bullish catalyst stemming from Gavin Wood’s deflationary proposal could reduce circulating supply, potentially boosting demand and lead to a price rebound. Such fundamental developments often influence traders’ sentiment, especially when technicals are ambiguous. It’s essential to watch whether the support at $3.60 holds or if further decline occurs, which would indicate a shift in control. Given these insights, investors should consider a wait-and-see approach or look for confirmation of a reversal signal if the fundamental catalyst gains traction. The mixed technical outlook combined with a promising fundamental proposal suggests that Polkadot could either bounce from support or break lower, so strategic positioning and careful risk management are recommended in the short term.