For DOT to regain a bullish outlook, it must find a decisive close above the 20-day and 50-day EMAs

Polkadot's [DOT] recent price movements revealed a steep bearish trend. The altcoin approached its long-term support level and returned to levels seen in 2020.

DOT was trading at around $3.85 at press time, up nearly 2% in the last 24 hours. However, the overall trend remained bearish. With ongoing selling pressure, can buyers find the momentum to reclaim important resistance levels?

DOT steeply descended over the last few months, consistently failing to rise above the $4.9 resistance level. At the time of writing, the altcoin was trading well below the 20-day EMA ($4.05), 50-day EMA ($4.22), and 200-day EMA ($5.23).

The repeated rejections from these moving averages and the inability to break through the 6-month trendline resistance (white, dashed) have intensified the selling pressure. DOT's recent drop below the $3.9 support level (now resistance) brought it closer to its multi-year low of around $3.6 - A critical level to monitor.

DOT's price movements suggested high volatility in the near future. If the altcoin can gather enough bullish momentum to jump above the $3.9 resistance level again, it could test the 20/50-day EMAs. Regaining these EMAs is crucial for buyers to gain an advantage in the short term and could potentially open the route to test higher resistance at $4.9.

However, the bearish outlook remained strong due to the overall downtrend. A drop below the important $3.6 support could speed up the decline and push DOT to explore new lows.

Also, the RSI had a reading of 40, at the time of writing. Here, it's worth noting that RSI's recent higher lows hinted at a bullish divergence with the price action's lower lows.

Support: The immediate support level was found at $3.6 - A multi-year low that's crucial psychologically. Falling below this could lead to further decline.

Resistance: The first resistance level to watch was at $3.9, followed by the 20-day EMA at $4.05 and the 50-day EMA at $4.22. A decisive move above these levels could give DOT buyers a chance to regain some market control.

Derivatives data revealed mixed feelings among DOT traders. The 24-hour long/short ratio had a reading of 0.9029, slightly favoring short positions and indicating some caution among traders. However, the Binance and OKX long/short ratios were significantly bullish, with Binance at 4.7013 and OKX at 3.58 - A sign that traders on these platforms may be hopeful about a recovery.