Polkadot (DOT) Nears Critical Zone: A Reversal Could Trigger 180% Surge
As bearish forces continue to gain stronger market control, the price of Polkadot (DOT) has fallen by 4.38% over the past day. According to CoinMarketCap, the price drop in DOT only highlights the asset form in recent days, as indicated by the loss of 7.99% last week. However, market analyst Ali Martinez assumes that this downward trend could have a positive impact soon.
Polkadot approaches key support – Points can stay and rebound to $10.80?
The following Price intensity fluctuations The cryptocurrency market swept last week, with Polkadot slipping below key support levels at $4.47, indicating an increase in bearish pressure. According to Ali Martinez, Altcoin appears to be heading to the critical support zone for $3.80, which could stop the current decline.
based on Proposed analysisDOT is undergoing a series of mergers, extending with parallel channels until July 2023. So, if the current downtrend persists, AltCoin may be retested at $3.80, the algorithm represents the lower boundary of that parallel channel.
According to historical models, market bulls are expected to step in the support area and raise demand to prevent further declines. Martinez explains that if this projection occurs, Polkadot may experience a price rebound, i.e. the midpoint of the parallel channel is about $6.40.
Due to the high buying pressure, DOT investors can expect the price of the upper boundary of the parallel channels to around $10.80, a potential 180% price increase. On the other hand, if Dot Bulls fails to hold the $3.80 support level, Altcoin could slip to $2.30 with a potential target of around $1.25 to $1.45.
Polkadot Market Overview
As mentioned earlier, at press time, Polkadot’s daily price fell more than 4% to $4.32. Meanwhile, the asset’s trading volume has been cut in half over the past 24 hours and is now worth $145.81 million. As Ali Martinez speculates, a drop in price trade volumes will indicate a lower selling pressure, which may lead to the potential for a price reversal.
Check out the technical indicators on its daily chart, Relative Strength Index (RSI)used to determine overbuy or oversold market conditions, currently 39, but progress. This reading adds more support for the bullish rebound of DOT forecasts. However, the asset’s price is well below its 100-day simple moving average (SMA), indicating that the expected price gathering may not happen immediately.
Meanwhile, Polkadot’s market capitalization is US$6.72 billion, continuing to rank among the world’s 30 largest cryptocurrencies.
