Polkadot maintains crucial support despite growing pressure

0
62

The past 7 days have been the most volatile for the crypto market in months. We have seen significant coin reservoirs and pressure mounting on altcoins. But despite this, Polkadot managed to stay strong, and despite increased bear pressure, the coin still remains above a very crucial support. But how long can he stay there? More to follow but first some pointers:

  • DOT sits above the $7 support after a slight rally 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

See also  Immutable Targets Web3 Gaming Adoption With $500M Fund

Data Source: TradingView

How will the DOT price evolve?

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

See also  FTX US acquires subsidiary Embed Financial for equity trading platform

For now, what bulls can hope for is a period of price consolidation. We’re still not ready for the big bull runs, plus the relief rally seen over the past 24 hours may just be a short-term reversal from last week’s crash.

For this purpose, it would be best to watch the price move above $7. If we are able to see some persistence for at least a week, then DOT could break modestly. But if the weakness persists, the DOT could eventually lose that support. This will inevitably trigger a further decline.

See also  Crypto bank Custodia sues the Fed for more than 19 months of delay in approving the account

Is it a good time to buy DOT?

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

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

LEAVE A REPLY

Please enter your comment!
Please enter your name here