Amid the recent euphoria surrounding the cryptocurrency market, Polkadot (DOT) has emerged as one of the best-performing assets, posting 107.5% price gains in the last 30 days. The prominent cryptocurrency asset recently rose to $8.81, marking its highest price point in the past five months.
However, as the Polkadot market remains filled with positive sentiment driven by price action and recent network reports, a cryptocurrency market expert with the username X Rekt Capital shared a valuable cautionary insight.
Polkadot should stay above $8.60 – Analyst
In a Last post on XRekt Capital highlighted the critical level of support needed for DOT to maintain its current upward trajectory. The analyst explains that after a recent surge of 35% in the past seven days, Polkadot has now recorded a weekly close above $8.60, a previous resistance level that has now turned into support.
Rekt Capital predicts that the altcoin is likely to retest to this price level in a move that has previously spurred an uptrend to the token’s current high of $55.00 in 2021. However, the cryptocurrency expert notes that Polkadot has also seen a retest. A failed test of this support zone slides in April 2024 to $5.8, a potential 32% drop from the current market price of the asset.
Therefore, DOT bulls need to ensure a successful retest of $8.6 to ensure the coin maintains its current bullish 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’s price is expected to rise to $12.61, indicating a potential 46.11% increase in the price of the asset. Interestingly, Rekt Capital’s DOT prediction is similar to that of fellow analyst Ali Martinez who predicted the coin would reach $11 after breaking to $6 one week ago.
DOT price overview
According to data from CoinMarketCap, Polkadot continues to trade at $8.68 after gaining 2.12% in the past. Along with this, the altcoin’s daily trading volume has increased by 21.78% and is now worth $795.37 million.
Data from Coincodex It shows that the overall market sentiment on the altcoin remains very bullish as evidenced by multiple factors including a Fear and Greed Index of 78 which represents extreme greed.
Moreover, the adoption of stablecoins on Polkadot continues to grow with the overall valuation of USDT and USDC on the blockchain network. It recently reached $120 million. This development indicates increased liquidity and trading activity that could stimulate demand and increase prices for DOT.
Considering these factors along with the start of the new season and high market enthusiasm towards the incoming Donald Trump administration, Polkadot is largely inclined to maintain its upward trajectory. However, these forecasts are not guaranteed and are subject to all market conditions.
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