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%.
It’s LIVE ⚡️ Agile Coretime—one of the foundations of Polkadot 2.0—is here!
That means:
🔹 Increased Flexibility & Scalability
🔹 Lower Barrier to Entry for Builders
🔹 Predictable Costs— Polkadot (@Polkadot) September 19, 2024
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.
Frequently Asked Questions (FAQs)
Polkadot price surged by 8% following the announcement of the Agile Coretime update on September 19. This update is expected to enhance the network’s flexibility and scalability, attracting more builders to the Polkadot ecosystem.
Agile Coretime is a new resource allocation system introduced by the Polkadot team. It aims to increase the network’s flexibility and scalability, making it easier for developers to predict costs and join the ecosystem. This could lead to more experimentation and innovative projects on Polkadot.
Analysis believe that if Polkadot can hold its current support and rally, there is potential for the price to reach $10 in the coming weeks, especially if bullish reversal patterns develop.
Related Articles
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/can-polkadot-price-hit-10-as-bulls-struggle-with-traders/
✓ Share: