Polkadot Price Analysis: DOT Continues Downward Trajectory

As an experienced analyst, I have closely monitored Polkadot (DOT) over the past few days, and the recent price decline has been a cause of concern. Polkadot slipped below the crucial $7 mark on Friday and continued its downward trajectory, with sellers pushing the price towards the support at $6.40.

The price of Polkadot (DOT) is trending lower, with sellers maintaining dominance and pushing the cost closer to the support level at $6.40.

On Friday, Polkadot’s price dipped beneath the significant threshold of $7, and the downward trend persisted throughout the weekend. The cryptocurrency closed Sunday at a price of $6.61.

Can Polkadot (DOT) Remain Above $6.40 

As an analyst, I’ve observed Polkadot (DOT) maintaining a specific price range over the last several days, suggesting a equilibrium between buyers and sellers in the market. The coin reached its peak price of $7.27 during this period on May 2nd. However, since then, there has been a consistent decline in Polkadot’s value. Sellers have managed to break through essential support levels throughout this downtrend. Polkadot dipped below the 200-day Simple Moving Average (SMA) on May 6th, causing its price to drop to $7.12. At present, the 20-day SMA, which is situated around the $7 mark, serves as a potential support level for Polkadot.

As a crypto investor, I’ve witnessed the price of DOT dipping to $6.99 on May 7th. Despite this setback, the 20-day Simple Moving Average (SMA) acted as a cushion, allowing the price to rebound slightly to $7.04 by May 9th. However, bearish sentiment resurfaced on May 10th, causing DOT to plummet by 4.43%, dropping below the significant $7 mark and the 20-day SMA. The bearish trend continued over the weekend with a decrease of 1.11% on Saturday and 0.71% on Sunday, leaving me with a dismal price of $6.61. Today’s trading session has been characterized by considerable volatility, with DOT touching a low of $6.43 but recovering slightly to its current value of $6.59, representing a loss of 0.36%.

Can Polkadot (DOT) Recover From Support Level 

Analysts generally anticipated a short-term dip, with a predicted price floor of $6.40 for Polkadot (DOT). The chart shows that sellers managed to drive the price below $7, but DOT has thus far held firm above its support level. However, the question remains: What’s next for DOT? If sellers can sustain their momentum, DOT will likely trend downward towards $6.40. Should this support level give way, it could potentially fall to $6.

Any notable shift in DOT‘s price necessitates a breach of its current trading band ($6.40 – $7). Should the price rebound, it may challenge the resistance at $7, with the 200-day Simple Moving Average (SMA) at $7.30 serving as the next potential objective. Nevertheless, there’s a likelihood of extended sideways action at DOT’s present level preceding any substantial recovery. The MACD and Parabolic SAR indicators currently favor bullish sentiment, suggesting an imminent uptrend for DOT. Nevertheless, a sell-off causing DOT to fall below $6.40 could result in both indicators turning bearish.

The open interest experienced a notable decrease initially, followed by a gradual uptick as depicted in the enclosed chart. It’s uncertain yet whether this upward trend indicates intensified demand and bullish tendencies.

Polkadot Working To Raise Network Awareness 

In spite of Polkadot (DOT) experiencing a price decline recently, the network has been proactively working with partners to boost recognition. It’s yet to be determined if these initiatives will lead to favorable outcomes in the future. Notably, Polkadot introduced Asynchronous Backing, a significant update, which alters how parachain blocks are verified. This enhancement is anticipated to lead to a twofold increase in block generation and an increase of 2x to 5x in extrinsics per block, thereby improving the efficiency of parachain blocks and expanding blockspace availability.

“Async Backing significantly enhances throughput by eight times, ensuring security doesn’t compromise, making it possible to accommodate Web3 applications in various industries like gaming and DeFi. This bridge between Web2 and Web3 is essential for expansive platforms such as Mythical Games.”

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2024-05-13 11:08