Polkadot's native token DOT has entered oversold territory, with its Relative Strength Index dropping to 25.58 on Tuesday. The price found a floor at $0.92 as retail investors rushed to sell, but nearly 69% of all positions remain long — a sign that larger players are quietly accumulating.
Oversold RSI Suggests Downside Fatigue
The RSI reading of 25.58 puts DOT well below the 30 threshold that traders typically consider oversold. That doesn't guarantee an immediate bounce, but it does indicate that selling pressure may be exhausting itself. The last time DOT's RSI hovered near these levels, the token recovered roughly 12% over the following week.
Support at $0.92 Holds Through Retail Panic
Sellers pushed DOT down to $0.92 during a bout of panic selling from smaller holders. That level has held as a support zone, preventing a steeper decline. For now, the price is hovering just above that mark, and traders are watching closely to see whether demand can absorb any further selloffs.
Long Positions Signal Smart Money Accumulation
Despite the price weakness, 68.8% of DOT positions are long, according to the latest market data. That imbalance is being attributed to institutional or smart money accumulation — investors who see the current price as a discount. The contrast between retail panic and institutional buying is stark, and it raises the question of which group will ultimately be right.
Whether DOT can hold above $0.92 and build on the oversold signal will depend on whether accumulation continues. The next major test for the token will be a move back toward $1.10, a level that has acted as resistance in recent sessions.
