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Polkadot Price Analysis: DOT Drops But Holds Above $7

Polkadot Price Analysis: DOT Drops But Holds Above $7

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The Polkadot (DOT) price has registered a drop of nearly 4% over the past 24 hours. However, despite the decline, DOT has stayed above the crucial $7 level. 

Despite the recent decline, DOT has registered an increase of nearly 9% over the past week, with analysts predicting a significant price jump in the near future. 

Polkadot (DOT) Holds At $7 

The Polkadot (DOT) price has seen considerable activity since the 30th of April when the price fell to a low of $6.06 during a hugely volatile session. However, DOT was able to recover and climb back above its support level of $6.40, eventually ending the session at $6.42. DOT was able to make a strong recovery from this level, registering an increase of 7.48% to $6.90. However, DOT could not move past the $7 level because the 20-day SMA was acting as a strong level of resistance. DOT was able to move past the $ 20-day SMA and the 200-day SMA on Thursday, as buyers pushed the price up to $7.29. 

The next couple of sessions saw DOT drop by 0.55% and 1.66%. As a result, DOT fell back below the 200-day SMA. However, crucially, it was able to stay above $7, settling at $7.13. Sunday saw buyers regain control, with DOT rising by 2.52% to $7.31. Despite a positive Sunday, the current week saw DOT back in the red on Monday, as it fell back to $7.13, slipping below the 200-day SMA.

However, with the 20-day SMA acting as a strong level of support at $7, DOT is back in the green during the ongoing session and is currently trading at $7.17. 

Where Does Polkadot (DOT) Go From Here?

So, what does the future hold for DOT? As seen in the price chart, the 20-day SMA is acting as a strong level of support at $7, where buyers are entering the market. For the immediate future, DOT faces resistance at the $7.24 mark thanks to the 200-day SMA. Any major upward price movement would require the price to get past this resistance level first. If DOT is able to move past the 200-day SMA, we could see the price test the resistance at $8.

However, should sellers retake control of the session, DOT could drop back to $7. Should this level of support be broken, the price could drop to $6.40. Looking at the indicators, the MACD and the Parabolic SAR are both bullish. This means we could see DOT move higher and at least go past the 200-day SMA. The RSI is currently in the neutral zone at 47.92, giving DOT plenty of room for appreciation. 

Analysts Bullish 

Several analysts have also expressed optimism regarding the DOT price, not just because of the nearly 10% price increase seen over the past week. One analyst has stated that buying DOT now is almost as beneficial as purchasing it six months ago. Some predictions indicate that DOT could even cross $10 should it be able to go past specific resistance levels.

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.

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