Polkadot Remains Above $6.40, Will It Recover Or Drop Further?

After dropping below the crucial 200-day SMA, which was acting as support, DOT has managed to find support at the $6.40 mark and consolidate near this level. 

However, if sellers break this crucial level of support, we could see a cascade in the near term, with the DOT price dropping to $6 or even below. 

Polkadot (DOT) Remains Above Support Level For Now 

The Polkadot price has not seen any significant movement since it dropped below $7 and the 200-day SMA last Wednesday. At this point, the 200-day SMA was acting as a crucial level of support for DOT, but with sellers controlling the market, DOT could not stay above this price level. Since then, DOT has stayed in the red, dropping 0.87% on Thursday and 1.46% on Friday to settle at $6.76, considerably below the $7 mark and the 200-day SMA, which was now acting as resistance.

The weekend began with a hugely volatile session that saw DOT drop to a low of $6.50. However, the price recovered and posted an increase of 0.59% to end the day at $6.80. DOT was back in the red on Sunday, dropping by 1.03% to end the day at $6.73. The current week began with another volatile session that saw DOT go as high as $6.83 and a low of $6.47 before settling at $6.58, a drop of 2.23%. As you can see from the chart, DOT’s 24-hour trading volume has also registered a significant decline since the 13th of April. 

Current Outlook 

The current trading session sees DOT still in the red, with the price currently down by 1.22% at $6.51. However, DOT has managed to stay above the $6.40 level, where it has strong support, with buyers entering the market at this point. With the 20-day SMA acting as resistance after a bearish cross with the 200-day SMA, we could see the DOT price stuck between $7 and $6.40, at least in the short term. Any significant price movement depends on DOT being able to go above the 20-day SMA or sellers pushing the price further down, even below its current support level.

If buyers are able to consolidate and take control of the market, we could see DOT test the resistance at the 20-day SMA. Should it break past this level, DOT could climb to $7.50. However, if sellers are able to break the level of support at $6.40, we could see DOT drop to $6 or as low as $5.50. 

Latest Polkadot (DOT) Predictions 

DOT’s price has remained relatively stable since falling below the 200-day SMA, with strong support at $6.40. This has led to DOT trading in a relatively narrow price range. However, while the cryptocurrency has lost over 30% in value over the past 30 days, some analysts have outlined bullish predictions for DOT in the short term. Popular X user Ash Crypto has said he is holding on to his DOT stash, adding that DOT could see some significant price action in the next few months. 

“Still holding my $DOT for DOT 2.0. It think we will see some cool action in coming months so I’m holding tight and praying for a pump to $15. Got some $DED from it, memecoins on solana had a good run, now let’s hope for DOT meme season.”

Crypto enthusiasts Thomas Kralow and FLASH also weighed in, with the former stating that DOT could even reach a staggering $100 during the bull market. FLASH was considerably more conservative but still believed DOT could see a substantial rally. Others who made similar predictions for DOT include CryptoWizard, who stated that DOT could see significant movement should it overcome the resistance at $9.60.

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.