Amidst the recent euphoria around the cryptocurrency market, Polkadot (DOT) has stood out as one of the best-performing assets, notching a 107.5% price gain in the last 30 days. The prominent crypto asset recently surged to $8.81, representing its highest price point in the past five months.
However, as the Polkadot market remains ravaged with positive sentiments driven by price action and recent network reports, crypto market expert with X username Rekt Capital has shared a valuable cautionary insight.
Polkadot Must Stay Above $8.60 — Analyst
In a recent post on X, Rekt Capital highlighted a crucial support level needed for DOT to maintain its current upward trajectory. The analyst explains that following its recent 35% rally in the past seven days, Polkadot has now recorded a weekly close above $8.60, a previous resistance level now turned support.
Rekt Capital predicts the altcoin is likely to retest to this price level in a move that previously spurred a bullish run to the token’s current all-time high of $55.00 in 2021. However, the crypto pundit notes that Polkadot has also experienced a failed retest at this support zone in April 2024 sliding to $5.8 i.e. a potential 32% decline from the asset’s current market price.
Therefore, DOT bulls need to ensure a successful retest of $8.6 to ensure the coin maintains its current upward momentum. Importantly, a monthly close above this support level indicates the potential for significant price gains in the coming weeks.
If this successful retest occurs, Polkadot is expected to rise to $12.61, suggesting a possible 46.11% increase in the asset’s price. Interestingly, Rekt Capital’s DOT prediction is similar to that of fellow analyst Ali Martinez who had forecasted the coin to reach $11 following a breakout to $6 one week ago.
DOT Price Overview
According to data from CoinMarketCap, Polkadot continues to trade at $8.68 following a 2.12% gain in the past. In tandem, the altcoin’s daily trading volume has surged by 21.78% and is now valued at $795.37 million.
Data from Coincodex shows that general market sentiment on the altcoin remains highly bullish as indicated by multiple factors including a Fear & Greed Index of 78 that represents extreme greed.
Furthermore, stablecoins adoption on Polkadot continues to grow as the total valuation of USDT and USDC on the blockchain network recently reached $120 million. This development indicates increased liquidity and trading activity that could spur demand and price increases for DOT.
Considering these factors combined with a booting altseason and high market enthusiasm towards the incoming Donald Trump administration, Polkadot is tipped largely to retain its upward trajectory. However, these projections are not guaranteed and are subjective to all market conditions.
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Semilore Faleti
https://www.newsbtc.com/news/polkadot-dot/polkadot-dot-must-retest-crucial-support-to-sustain-uptrend-details/
2024-11-30 15:00:42
