Will Polkadot (DOT) Price Plummet to $5 or Skyrocket Beyond $7?

Since the middle of the summer of 2022, Polkadot (DOT) has been in a downtrend and got equally impacted by the bear market; similar to other top altcoins present in the crypto space. However, the flagship cryptocurrency, spearheaded by Gavin Wood, has seen some decent rallies this new year.

New Polkadot Developments

Polkadot, which describes itself as a network that allows blockchains to communicate with one another & conduct transactions without the need for a third party, is getting ready for its roster of events at ETH Denver 2023. The Polkadot team has planned a BUIDLing summit conference program, and community side events to take place between the 28th of February and the 5th of March.

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Polkadot has also been performing well in terms of development activity. The cryptocurrency reportedly set the pace for considerable development activity over the course of the past month, as stated in a study that was just published by the market intelligence platform Santiment. The tool looked at the number of contributions made on the GitHub platform to gauge the level of developer activity across different blockchain networks.

However, when it comes to the value proposition of its native token, DOT is currently experiencing a short-term upward trend that began in January of 2023. The price of Polkadot (DOT), which is now trading in an ascending channel, recently tested the upper trendline as resistance at $7.74.

Polkadot (DOT) Price Action

Even though DOT has experienced some weariness on Friday–declining by over 7% at one point–the effect was widely felt throughout the crypto market, impacting major assets such as Bitcoin (BTC) and Ethereum (ETH) as well. This was due to the growing concern regarding rising inflation which got highlighted by the release of the U.S. PCE data by the Bureau of Economic Analysis.

Moreover, despite the fact that there are industry specialists and analysts who believe that the token would most likely rebound to the upper trendline and break above $7.74, the bullish thesis might be rendered invalid if the price falls below the three exponential moving averages (EMAs). A downward projection of $6 or even lower at $5.5 could result from this.

Polkadot (DOT) Price

As things currently stand, the price of Polkadot (DOT) is currently trading at $6.64 which represents a decrease of 7.60% over the past 24 hours, in contrast to a decline of 10.46% over the last seven days, according to CoinGape’s crypto market tracker.

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Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

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/polkadot-dot-price-plummet-or-skyrocket/