Polkadot Price Prediction: DOT/USD Ignores The Massive Crypto Selloff, Holds Above $5.50
- Polkadot saved from a potentially massive breakdown by a key ascending channel.
- DOT/USD is not out of danger yet as long as the channel resistance is still intact.
Polkadot soared to new highs in August, allowing investors to diversify their portfolios as they seek alternatives to the major cryptocurrencies (Bitcoin, Ethereum, and Ripple). The token, however, hit pause on trading a monthly high of $6.79. The barrier opened the Pandora box as DOT plunged to levels slightly above $5.00.
Recovery from the dip has not been consistent as seen on the DOT/USD hourly chart. Although the lock-step trading sustained a gradually forming ascending channel. The channel resistance continues to make it difficult for Polkadot to rise above the critical $7.00 level. On the downside, its support has been instrumental in keeping bearish action in check in a bid to avoid acute losses.
At the time of writing, DOT is trading at $5.82. This follows a 5.94% retreat over the last 24 hours. The immediate downside is protected by the 100 Simple Moving Average (SMA). Moving averages are key indicators for support and resistance. In this case, if the price holds above the 100 SMA in the 1-hour range, there is a possibility that DOT will continue with the bullish price action currently targeting $6.00.
Read more: Polkadot Price Prediction: DOT/USD Rally Hits Pause At $6.5 But How Nigh Is $10?
DOT/USD 1-hour chart
On the other hand, The Relative Strength Index (RSI) recovery from levels close to the oversold has stalled before the midline (50). Consolidation would take precedence if the RSI manages to hold above 40. This indicator highlights how strong a trend is but is used in conjunction with other technical signals and indicators.
For now, holding above the channel support essential for Polkadot. A break down below the channel support could push DOT/USD towards the next support target at $4.00. On the upside, trading above $6.00 (next resistance target) could pave the way for gains that will eventually bring down the channel resistance.
Polkadot Intraday Levels
Spot rate: $5.83
Relative change: 0.1295
Percentage change: 2.25%
Volatility: Low
Read more: Polkadot Will Redenominate Its DOT Token on Friday, Changing Its Size by 100x
- Breaking: U.S. CPI Comes In Lower Than Expectations, Bitcoin Rises
- Bitcoin Crash Incoming? Tom Lee Backs Peter Brandt’s 50% Decline Prediction Despite Strong ETF Inflows
- Breaking: JPMorgan Enables Institutions to Use Bitcoin, Ethereum as Collateral
- Changpeng Zhao Comeback? PolyMarket Set 62% Odds of Binance Return by December Following Trump Pardon
- Matrixport Predicts Market Direction as $6B Bitcoin, Ethereum, XRP Options Expire Today
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
- PUMP Price Prediction as Whales Accumulate 4.2B Tokens- Is 135% Rally Next?
- Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide
- Solana Price Prediction as Osprey’s S-1 Filing and Hong Kong’s ETF Launch Fuel Reversal Hopes- Is $250 Next?
- Ethereum Price Poised for Breakout as Wyckoff Re-Accumulation Meets BlackRock’s $110M Purchase
- BNB Price Prediction as Analysts Eye $1500 Ahead of Fresh Coinbase and Robinhood Listings
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
