Can Polkadot Price Hit $10 As Bulls Struggle With Traders?

Polkadot price has been falling since March 2024, when it hit a peak price of $12. Despite the dropping price, the network has kept on building. The Polkadot developers have released a new update that will pave the way for the next wave of Polkadot 2.0 upgrades. This comes when the crypto market is very bullish following the Fed interest rate cut on Wednesday and the BOJ leaving its rates unchanged. Meanwhile, the DOT price action shows signs of bottoming out. Is Polkadot about to rally?

Bulls vs. Traders: Who Will Push Polkadot Price Up?

A tussle is going on between the bulls and traders amid the Agile Coretime release. Polkadot price has been under the control of bears since peaking in the March mini-bull run and is down 67%. 

Data from Santiment shows that in line with falling prices, the DOT open interest (OI) has been dropping, which means DOT open contracts have been dropping throughout the months from March.

Traders exiting a particular market can harm the price via a growing negative market sentiment. Additionally, lower liquidity can make it harder for larger investors to enter or exit positions, impacting DOT price.

Nevertheless, DOT investors are optimistic about potential buying from yearly lows as the OI spiked in the last 24 hours. Moreover, the trend outlook is bullish in the long term as DOT could have hit the bottom. Additionally, a massive bullish reversal pattern could be forming that could push Polkadot price back to $55.

Polkadot Price Analysis: All Eyes on $55, With a Stop at $10

The Polkadot (DOT) recent price action shows a potential bottom formation around $3.63. The price is currently trading near a major support level between $3.63 and $4.36, a critical zone from which the price bounced earlier in 2022 and 2023.

Key Support and Resistance Levels

• $3.63 – $4.36: Key support zone where the price is currently consolidating. This level has been historically strong and might hold once again.
• $6.70 – $9.65: The nearest resistance zone, aligning with previous consolidation and a resistance level that Polkadot will need to break through for further upside.

The price is hugging the lower Bollinger band, indicating oversold conditions. Historically, such situations often lead to mean reversions, where the price moves back toward the middle or upper band, suggesting the potential for a bounce.

If the price successfully holds the support and rallies, the projected target of a 123% gain could push the DOT price toward $9.65, matching the upper resistance zone. 

Conversely, a great place to accumulate is if the price falls to the $3.60 – $4.50 range. However, if the price drops lower and the market sentiment shifts, Floki could drop to $3.00.