Saturday, February 24, 2024

Polkadot maintains crucial support despite growing pressure

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The last 7 days were the most volatile in the crypto market for months. We saw major coins tank and pressure mounting on altcoins. But despite this, Polkadot has managed to stand strong, and despite increased bear pressure, the coin still remains above very crucial support. But how long can it stay there? More to follow but first some pointers:

  • DOT sits above the $7 support after a slight recovery today

  • The coin also has the lowest weekly loss of all the top 10 major coins

  • Consolidation above $7 could provide bullish momentum in the coming weeks

Data Source: TradingView 

How will DOT price play out?

For now, we are all trying to assess directional trends in the market to see where everything goes. While most coins have seen modest gains, the overall market sentiment is bearish. So, even as DOT shows superb resilience above $7, it must be clear that downside risks are quite significant at the moment.

For now, what bulls can hope for is a period of price consolidation. We are still not ready for major bull runs, and besides the relief rally saw over the past 24 hours could just be a short-term reversal of last week’s crash.

To this effect, it would be best to watch how the price develops above $7. If we are able to see some persistence for at least a week, then DOT could break modestly. But if weakness remains, eventually DOT could lose this support. This will inevitably trigger a further downswing.

Is it the right time to buy DOT?

Well, many analysts in crypto feel that the market could remain bearish for a few months. Although we may see some bull runs here and there, most will largely be short-lived. 

For this reason, if you are buying crypto for short-term investing, current market conditions may not be favorable. But for long-term buyers, DOT’s discount right now makes it a very attractive asset.


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