Polkadot Price Analysis: DOT Struggling To Build Momentum

Polkadot (DOT) is currently trading at $7.15, having failed to move past the 20-day SMA. DOT has been relatively muted despite a booming cryptocurrency market.

DOT has registered an increase of just 1.84% over the past 30 days despite significant advancements and improvements to its network.

Polkadot (DOT) Remains Sluggish

Polkadot (DOT) has not registered any substantial gains since dropping to $6.97 on Friday after spending almost all of last week in the red. It recovered on Saturday, rising by 1.29% to $7.06, reclaiming the crucial $7 mark. However, DOT was back in the red on Sunday, dropping by 0.99% to settle at $6.99 and ending the week in the red. The current week began with a highly volatile session that saw DOT climb to $7.19. However, sellers were able to claw back these gains, with DOT eventually dropping to $7.01. It is important to note here that DOT was able to stay above $7, a crucial support level.

Tuesday saw DOT continue its upward trajectory, rising to $7.19. However, with the 20-day SMA acting as resistance at this level, it could not move any higher. DOT remained positive on Wednesday, rising to $7.26. However, it was unable to move past the resistance at this level and was back in the red on Thursday, dropping to $7.14, a drop of 1.65%. The current session sees buyers and sellers struggling for control, with DOT trading at $7.15.

Polkadot (DOT) Price Prediction

Any significant Polkadot (DOT) price movement depends on its support and resistance levels. As we can see from the price chart, DOT has support at $7, which is where the 50-day SMA is positioned. If sellers regain control of the current session, we could see DOT drop to this level. If there is any further selling pressure, DOT could drop to $6.40, which is its next level of support.

Source: TradingView

DOT faces strong resistance at $7.20, where the 20-day SMA is positioned. If sellers can move past this level, DOT could test the resistance at $7.50. If there is any further increase, DOT could rise to $8. 

What Are Analysts Saying? 

Analysts have backed DOT and expect the price to increase substantially. One analyst, Michael van de Poppe, stated that he believes DOT is doing great in fundamental growth and that it is an excellent time to accumulate a position. 

“$DOT is doing great in fundamental growth. They are focusing on RWA and have multiple great projects within the ecosystem (Centrifuge & Energy Web). Right now, the price starts to crawl upwards, and I think it’s still a great time to accumulate a position.”

Another analyst, @CryptoCapo_, stated that DOT is forming a new bullish trend, with Polkadot playing a key role in major technological advancements. 

“Chart keeps looking good. With the price at key major support and forming a new bullish trend, @Polkadot is leading among major blockchains in advancing AI and gaming. It ensures secure data transfers, decentralized processing for AI, and seamless asset integration in gaming, with enhanced security and governance.”

Web3 Foundation, the entity behind Polkadot, is also strengthening the network’s presence in Asia through a grant to PolkaPort East.

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.