Polkadot Price Analysis: DOT At Crucial Level, What Should We Expect?

By Taaza Facts

Published on:

Polkadot Price Analysis: DOT At Crucial Level, What Should We Expect?

The Polkadot (DOT) price has recently faced significant selling pressure, having fallen below an important support level at $7 on Friday.

The current week sees DOT remain bearish, with sellers firmly in control and DOT hovering at a crucial support level that could dictate future price movements.

Will Polkadot (DOT) Continue Bearish Streak?

Polkadot (DOT) has been consistently unsuccessful in surpassing key resistance levels. DOT has faced rejection twice at the $7.50-$7.60 level and at the $7.20 level, leading to a significant decline due to increasing selling pressure as bearish sentiment gained momentum. DOT had a positive start to the previous week after dropping to $6.98 last Sunday. DOT reversed this bearish trend and rose to $7.23 by Wednesday. However, with the 20-day SMA acting as resistance at this level, DOT could not sustain its bullish momentum and fell back in the red on Thursday, dropping to $7.13, a fall of 1.57%.

Friday saw selling pressure intensify as DOT dropped by nearly 7%, slipping below $7 and dropping to $6.65. The bearish sentiment persisted into the weekend, with DOT dropping by 4.04% on Saturday and settling at $6.38. Sunday saw a marginal recovery, with DOT rising to $6.52. However, DOT started the current week back in the red after a highly volatile session that saw DOT settle marginally lower. The current session sees DOT down by over 2% as sellers look to push DOT below a crucial support level. Whether DOT does fail to stay above this level remains to be seen.

Will Polkadot (DOT) Recover Or Continue Drop?

Looking at the Polkadot price chart, we see DOT faces resistance at the $7, $7.20, and $7.50 zones. Currently, DOT is near its support zone of $6.40, a level that has held on several previous occasions. This is because strong demand counteracts the selling pressure, preventing the price from dropping further. However, should this level of support be breached this time around, we could see bearish sentiment continue, with DOT potentially dropping to $6.

Source: TradingView

Polkadot (DOT) is currently in a phase of slight consolidation, indicating the price could potentially stabilize. If DOT manages to recover, we could see an increase to $7 and $7.20. Should it get past these levels, the next level of resistance is in the $7.50-$7.60 zone, which is where the 200-day SMA is also present. For sustained bullish momentum to build, DOT must reclaim these levels. Technical indicators such as the MACD also reflect the current bearish sentiment in the market, having flipped to bearish.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


Taaza Facts

I am a multifaceted content creator with expertise in blogging, Finance, and Cryptocurrency reviews. My creative journey involves weaving captivating stories in blogs, designing aesthetically pleasing and functional websites, and dissecting the nuances of cinema. We are dedicated to sharing our passion and insights with a global audience.

Related Post

BlockDAG On The Brink Of Earning $5M Daily From Presale; Outshines Arbitrum’s TVL Growth And Bitget Token’s Rally

Amid the cryptocurrency market’s revival, both Arbitrum and Bitget Token are experiencing growth, with Arbitrum’s Total Value Locked (TVL) climbing to $3.103 billion and Bitget Token ...

Altcoin Outlook: Analysts Forecast 3 Potential Breakouts Amid Market Bloodbath

As the market takes a downturn, experts eye specific altcoins poised for significant growth. Despite widespread challenges, these tokens show promise to surge. Analysts highlight three ...

Polkadot Timeline: A History of Polkadot

Polkadot is an incredibly unique open-source shared multichain platform that connects and secures a network of blockchains. Often referred to as an “Ethereum killer,” this blockchain ...

Don't Miss the Boat: Top Altcoins Expected to Soar in the Upcoming Altseason!

The market is buzzing with excitement as altseason kicks into high gear. With the bull run of 2024 already in motion, attention is shifting to promising ...

Leave a Comment

Actor John Abraham Purchases Bungalow In Mumbai For Rs 75.83 Crore Ankita Lokhande: From TV Stardom to Bollywood Dreams | Inspiring Journey Ayesha Khan Lifestyle, Bigg Boss 17 Wild Card, Boyfriend, Family, Munawar faruqui, Age, Biography Kalki 2898 AD – 100 Times Bigger Than Salaar Prabhas Film Bigg Boss 17: Salman Khan scolded Ayesha badly, got angry on Munawar-Ayesha matter