James Atkins
Editor
Editor
After dropping by more than ten percent in the previous week, Polkadot (DOT) has now come closer to $10. This week’s gains were impressive as the coin recuperates much of the losses reported in the middle of May.
The cryptocurrency hit a new all-time high at $39.29 on Thursday. But fails to sustain the bullish momentum and pulled back below $36.00.
The sell-off was triggered by profit-taking as DOT surged nearly 100% Polkadot (DOT) could plunge after correction from its recent rally.
However, this bull run is coming to an end, and a downturn is on its way. Here are some key things to note:
It’s not the first time DOT has pulled a “fake out” this month. Just before May began, the altcoin tested $10 once more before being violently rejected at $10.5.
We don’t believe that conditions in the cryptocurrency market have significantly changed. Then again, DOT will undoubtedly fail to rise over $10.
What’s important to remember is that Polkadot is one of the few large-cap altcoins that haven’t started a new uptrend yet. This means that it could be one of the last coins to catch up with Bitcoin’
Furthermore, the cryptocurrency has already gathered a significant amount of ground since its May lows. Although DOT bulls have enjoyed a good deal of bullish momentum recently, it was expected that they would retreat at some point.
Before attempting to rise again, DOT will most likely retrace the $7.35 support level. This would result in a decline of around 27% of its present value.
The price will be roughly 70% lower than DOT’s most expensive price in 2022. However, if bulls can create enough demand to push the price above $10.5, DOT will almost certainly advance towards $16.
I think it’s fair to say that the current market conditions are not conducive to any large price movements in DOT.
The cryptocurrency is still trapped between two key levels of resistance and support. For the time being. It seems like DOT will continue to consolidate within this range.
Many altcoins have recently suffered a large drop in value. However, this does not negate the long-term prospects. Coins like DOT provide an enormous amount of value and are supported by serious initiatives.
While the recent price action might be discouraging. It is important to remember that DOT is still up significantly from where it was a few months ago.
And, most importantly, the fundamental story has not changed. DOT remains one of the most promising altcoins in the space.
DOT will likely return above $20 somewhere this year. That would still be a 2x multiple from the current price today. There is therefore so much upside.
The big question for DOT investors is whether the recent surge in price is sustainable. Only time will tell, but if DOT can hold above $10.5.
It stands a good chance of advancing to $16. If not, then a drop to around $7 seems likely. In any case, DOT looks like a good investment at the moment, and I think it has a lot of potential in the long run.
Therefore, if you’re looking to trade DOT, be patient and wait for a good entry point. The currency market has significantly changed and DOT will undoubtedly fail to rise over $10.
However, it could be one of the last coins to catch up with Bitcoin. So it’s worth waiting for a dip before buying in again.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
