- Despite negative market sentiment, analysts remain optimistic.
DOT could decline to $5.542 in the short term or in a bullish scenario, surge to $6.649.
As an experienced analyst, I have closely monitored Polkadot’s [DOT] price movements in the past week. Despite the negative market sentiment and a 9.69% decline in DOT prices over the last seven days, I remain optimistic about its future prospects.
As a researcher studying the cryptocurrency market, I’ve observed a significant decrease in Polkadot [DOT]’s value over the last seven days. Specifically, the price has dropped by approximately 9.69%.
Currently, based on information from CoinMarketCap at the moment of writing, DOT was priced at $5.85 and had a total market value of approximately $8.4 billion. Similar to other cryptocurrencies, DOT has been influenced by unstable Bitcoin prices, leading to price decreases.
Despite the decline, many crypto analysts remain optimistic, predicting an upcoming price surge.
According to pseudonymous analyst Crypto Thanos, DOT is set for a surge.
“The DOT token erased its March and November 2023 markers on larger charts, strengthening my conviction for a bullish trend advance; price declines are expected to be short-lived.”
Based on the analysis, DOT will respect the lower support level and start an uptrend.
Similarly, Rekt Frencer posted on X, expressing optimism about the future. In this post, he emphasized,
“Polkadot, which is relatively new to the AI field, is currently being utilized by initiatives such as @origin-trail and Phalanetwork through its technology. Given this trajectory, it’s plausible that Polkadot may soon become the preferred destination for AI-focused projects.”
As an analyst, I remain hopeful that the partnerships and adoption of Polkadot by various companies will boost its price.
What DOT’s fundamentals tell us
As a researcher examining the market trends of DOT, I’ve noticed some significant price movements. Specifically, on the 18th and 19th of June, the value of DOT dipped below the crucial support threshold of approximately $6. At the moment I’m writing this analysis, that price level remains breached.
Last year, the price of DOT hit its lowest point since then at $5.505 due to the decline. Currently, DOT is making efforts to surpass the significant support level of approximately $6 as a potential resistance level. If successful, it may set a new resistance level around $7.3.
As a researcher observing the financial markets, I’ve noticed that the Relative Strength Index (RSI) currently stands at 34. This level suggests that bearish sentiment continues to dominate the market. Moreover, the RSI has crossed below its moving average (RSI-MA), causing it to dip even closer to the oversold zone. These occurrences point towards increased selling pressure, resulting in downward price movements.
Examining the Coinglass data more closely, it reveals that the weighted funding rate has been decreasing since it dipped below the negative mark on the 18th and 19th. This downward trend in funding rates signifies investors’ reluctance to enter long positions, leading to a market equilibrium or neutrality.
Based on Santiment’s analysis, the open interest for DOT has been decreasing since the 8th of June. A decrease in open interest signifies that fewer new positions are being opened, while traders are liquidating their existing ones.
Since DOT has declined, many investors would avoid entering positions because of price impact.
Read Polkadot’s [DOT] Price Prediction 2024-25
Short-term possible price movements
As an analyst, I’ve observed that for the past two days, DOT has experienced negative funding rates and decreased open interests. This trend suggests a strong bearish sentiment in the market.
As a researcher examining current market trends, my analysis suggests that in the immediate future, the price is likely to dip further and reach the previous low of $5.542. Nevertheless, should there be a significant increase in demand, the price could spike up to hit the resistance level at $6.649.
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2024-06-21 10:15