Polkadot (DOT) Eyes Top 10 Spot, Hanging on Bullish Defense

2023-09-13, 09:49

TL; DR

The $4.30 price level is one of the long-term support zones.

Polkadot’s short time frame charts show bearish momentum while the long term ones indicate a possible future bullish trend.

If DOT’s price momentum increases it may breakout above $7.70

Introduction

Currently, most cryptocurrencies are within dips following the mid-August crypto market flash crash. However, Polkadot (DOT) is one of the digital assets that has shown resilience since it has remained bullish in the long-term timeframes. As such, the indicators do not show signs of strong bearish pressure in the coming days.

Sadly, it is close to 918% lower than its all-time-high attained on 4 November 2021. This analysis looks into the recent, current and possible future Polkadot price movements.

Polkadot Defends Key Support Zone

During mid-August the Polkadot price fell below the key $5.00 support level which triggered strong negative sentiment. As the negative market sentiment increased during August the DOT price slipped further down eroding the gains achieved in July and at the beginning of the month.

Polkadot Bullish by End of August

Polkadot price prediction indicated a bullish period ahead. During the last week of August the DOT price was trading close to its long-term demand zone showing that the bulls were increasing the buying pressure.

In fact, the DOT price was trending below the the 50-day EMA and 200-day EMA. With this, both the positional and short-term trends were facing a downward direction. If the bulls had regained the 50-day EMA they could have reversed the DOT price to trend upwards.

On 31 August DOT was trading above a long-term horizontal support zone at $4.30 which had been in place for the past 1,100 days. At that time, there was a high possibility that the Polkadot price might maintain its position above that support level or might fall below. Nevertheless if the price stays above that crucial support zone the market may remain bullish.

In case the DOT trends above $4.30 it may target $7.70 which is the next strongest resistance level. However, as you note, $7.70 is about 74% above $4.30. Therefore, to reach that level there is a need for sustainable buying pressure for the next few days or weeks.

DOT Price Prediction: Bearish Patterns Raises Breakdown Concerns

The daily DOT trading chart for 2 September tells a different story. It paints a strong bearish picture since DOT was trading within a descending triangle which is a bearish signal.

DOT Stuck in a Descending Triangle- TradingView

As The Graph shows, the area of support was $4.30 raising fear that DOT might have a breakdown. The daily RSI indicator, which was below 50, confirmed that strong bearish momentum
Unfortunately, the DOT price may slip down towards $2.00 which is the next critical support area. Nonetheless, to reach that level its value should fall by close to 53%. It is essential to note that the zone around $2 coincides with Polkadot’s all-time lows.

We can also learn various DOT price movement possibilities by analyzing the last weekly chart for August. The signals generated during that week show ambiguous readings.

For example, DOT’s relative strength index (RSI) reading was below 50 which indicated a bearish momentum. Nevertheless, it exhibited a bullish divergence showing a high possibility of a near future price rise.

In general, traders use the RSI indicator to detect overbought and oversold zones which help them to make better investment decisions. If the RSI reading is above 50 it is a bullish signal. However, if the RSI is below 50 it is a bearish momentum signal.

Polkadot Price Changes in September

During the first week of September DOT turned bullish again as it broke out of the descending channel. However, in order for it to push above $4.26 the bulls should increase the buying pressure. A further increase in the buying pressure might result in DOT price moving towards $4.50.

Polkadot’s Current Price

At the time of writing, 9 September, traders can buy DOT at $4.24. The following graph indicates Polkadot price movement for the past two weeks.

Polkadot price Movement - CoinGecko

As observed on the graph, the DOT price dropped from $4.76 on 29 August to $4.17 on 1 September 2023. Similarly, it lost by 5.1% within the last 7 days and by 16.3% within the previous month.
It is currently in a short-term downtrend. What is also noticeable is that DOT was ranging between $4.17 and $4.30 within the last 7 days. Again, DOT’s daily outlook is showing bearish momentum as the next diagram indicates.

Polkadot Daily Price Chart

Although DOT has shown bullish momentum for most of the day. It has turned bearish at the end. The Ichimoku indicator is confirming the Polkadot bearish price movement as shown below.

Polkadot price Movement - Morpher

In the diagram above, the MACD line (blue) is below the signal line (orange) showing a bearish momentum. Also, the Ichimoku cloud is orange which indicates relatively high selling pressure. Therefore, it is not the right time for intra-day traders to buy Polkadot. However, long term investors can buy and hold it.

Conclusion

Polkadot has been one of the cryptocurrencies which has been resilient since the mid-August crypto flash crash. Recently, it rose above $4.30, the long-term horizontal support zone. However, on 8 September its value dropped below that price level as it traded at $4.29. Although the short-term outlook is bearish, the long term one remains bullish.

FAQs about Polkadot

Can Polkadot reach $100?

It is most likely that Polkadot (DOT) will reach $100 at a certain date. However, what is not certain at the moment is when it can attain that value. A sudden bullrun can push the DOT price towards $100.

How much will 1 Polkadot be worth in 2025?

In 2025 the price of Polkadot (DOT) is likely to fluctuate between $2.41 and $8.30 with an average value of $5.89. However, DOT may perform better or worse than this depending on the existing global economic environment and its adoption rate, among other factors.

How much is Polkadot?

Polkadot’s current price is $4.43. However, it is showing a short-term bearish momentum which may lead to a further price fall in the coming days or weeks. DOT price predictions show that its value may range between $1.70 and $5.84 by the end of 2023.

Can Polkadot hit $500?

It is possible that Polkadot may eventually attain a price of $500 in the long term. In fact, several predictions in 2021 showed that DOT might attain a value of $500 by 2026. However, it may take longer to reach that price.

Author: Mashell C., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

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