As a seasoned analyst with extensive experience in the cryptocurrency market, I have closely monitored Polkadot (DOT) over the past month, witnessing its choppy price action and the resilience of its support level at $6.40. While many investors were bearish about DOT’s prospects, the coin has displayed remarkable strength in bouncing back above $7 after each sell-off.
Over the past month, Polkadot (DOT) has faced turbulent markets, with sellers causing the price to dip down to $6.41. Yet, even with the pessimistic market outlook, the support level for DOT at $6.40 has managed to remain robust.
As a crypto investor, I’ve noticed an uplifting trend with Polkadot (DOT) lately. The market has seen buyers regain control, successfully pushing the price beyond the $7 mark once more over the past few days.
Polkadot (DOT) Has Strong Week
As an analyst, I’ve observed a significant rebound in Polkadot (DOT) pricing this week following a precarious approach to its critical support of $6.40. Many investors had braced for potential bearish trends should sellers have successfully driven the price lower. Prior to last week, DOT was ensnared between the 200-day Simple Moving Average (SMA) and the 20-day SMA towards the beginning of the month.
As a researcher studying the cryptocurrency market, I’ve observed an intriguing pattern with DOT this week. After reaching a low of $6.63 on Sunday, the price experienced significant volatility during the opening session of the current week. DOT reached a high of $6.83 and a low of $6.41 before eventually settling at $6.67.
On Thursday, DOT surpassed the notable price level of $7 for the first time, closing at $7.03. Subsequently, a robust performance on Friday pushed the price further up to $7.20. At present, the trading session maintains DOT’s price at $7.20 as investors and traders vie for control.
Where Does Polkadot (DOT) Go From Here?
From my analysis of the price chart, I’ve identified a significant support level at $6.40 for DOT, marking the lower end of its trading range. Currently, DOT is priced at $7.19. If bullish momentum continues, DOT may advance to $7.40, encountering the 200-day Simple Moving Average (SMA) as a potential resistance level. Should DOT surpass this hurdle, a short-term rally toward $8 could be on the cards. Conversely, if bearish forces regain control, we might witness a repeat of previous patterns with DOT falling back to $7, where the 20-day SMA comes into play as support. If this level is breached, however, DOT could retrace its steps and head toward the $6.40 mark once again.
Based on the technical analysis of indicators, the MACD signal line is presently signaling a bullish trend for DOT, implying that it may carry on with its price surge, at least temporarily. Furthermore, the Parabolic SAR indicator, as displayed in the chart above, indicates a bullish position towards DOT, underscoring the overall optimistic sentiment towards the cryptocurrency.
Polkadot Sees Record-Breaking User Engagement
Polkadot’s price isn’t the only thing worth noting at the moment. In fact, there are other noteworthy developments on the platform. User engagement and activity have reached new heights. The number of active addresses on Polkadot reached an all-time high of 650,000 by the end of April, according to DotLake data. This surpasses the previous record set only a month prior in March.
“April set a new all-time high for monthly active accounts on Polkadot. This milestone was reached since the launch of parachains in the beginning of 2022.”
The rise in active addresses can primarily be attributed to Moonbeam.
The Founder Institute revealed a new collaboration with Polkadot, marking the first time the institute will host a Web3 cohort as part of its Core Program.
“We’re excited to share big news: The Founder Institute (FI) and Polkadot have joined forces for a pioneering partnership! This collaboration kicks off an innovative new phase as we introduce the inaugural Web3 cohort into FI’s Core Program. Our combined efforts aim to transform the world of startup acceleration and Web3 technology education, bringing about groundbreaking advancements.”
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2024-05-18 11:23