Polkadot (DOT) recently broke a bullish market structure on August 24 but has since retraced, hovering above the $4.22 support level. This $4 region is seen as a psychological support zone. While traders are uncertain if DOT will dip to $4 or bounce back from $4.22, the daily chart suggests a bullish market structure that could push DOT towards $5.

However, the 12-hour chart indicators show some bearish signs. The MACD formed a bearish crossover, and the OBV was rejected near its recent highs, signaling potential downward pressure. Despite this, the OBV's resilience suggests that a drop to $3.6 is unlikely.

A brief dip below $4.22 could occur before a recovery, with $4.11 being a key level. Traders may find buying opportunities between $4.05 and $4.11, targeting a rebound to $5.17. This aligns with a potential reversal as DOT seeks to form a short-term bottom.