Polkadot, introduced in the year 2016 via whitepaper, was founded by the creator of Ethereum, Gavin Wood. Polkadot was designed to allow blockchains to exchange messages and perform transactions without the help of a trusted third party.
The uptrend for Polkadot started at the beginning of the year 2023 as the price started to rise from the low of $4.30. Annual highs were created at $7.90, which was not sustainable for the price and triggered the drop. The price then corrected the move by dropping and creating a low at $5.15, inducing a downfall of approximately 34.63% from annual highs.
DOT price attempted to retest the highs but was not able to do so due to heavy sell-off and rejection above $7. The bears opposed Dot’s price to cross above the $7 level and pushed the price down to the March lows. The year-to-date return has come down from 84% to 24.72% amid the correction phase.
Polkadot coin price is currently hovering near the demand zone, which caused the price to bounce off previously in the month of March. If bears are able to shatter the current support level, there is a higher probability for the price to lose every bit of gain it made in the year 2023 and hit a yearly low of $4.30.
Polkadot Partners With Deloitte
Deloitte, one of the major accounting firms in the world, integrated with para chains of Polkadot called KILT blockchain which focuses on decentralized identities and verifiable credentials, announced by Polkadot on May 4.
Deloitte will use the kilt to support its KNOW-YOUR-CUSTOMERS(KYC) and KNOW-YOUR-BUSINESS(KYB) processes, which will help in protecting the institutions from fraud, corruption, money laundering and other crimes.
Dot Price Might Fall To $4.30 level?
The coin price trades below 20,50,100, and 200-day EMA suggesting negative momentum in Dot price. If bulls can push the price above the $6 level and significant bullish strength, there is a clean move for the price to retest the $7 level and probably break it, reversing the trend from bearish to bullish. RSI trades at 38.13, suggesting bearish momentum, but it has started to rise as the price forms support at the $5.24 level. Chaikin money flow score is 0.11, rising from -0.11 in the span of 5 days, indicating increased strength in the market to protect the $5.24 level. The longs/short ratio is 0.95, with 48.72% longs and 51.28% shorts, indicating more selling pressure in the price during the last 24 hours.
Conclusion:
The market structure and price action show that if the price can rise above the $6 level, traders can expect a reversal in trend and a possible retest of the $7 level. While on the other hand, if bulls could not protect the $5.24 support, investors might lose every single bit of gains Polkadot made in the year 2023, pushing the price down to the $4.30 level.
Technical levels:
Major support: $4.30 and $5.24
Major resistance: $6.06 and $7
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/14/polkadot-price-prediction-dot-price-arrives-at-march-lows/