Technical indicators loom over Polkadot, the blockchain interoperability rockstone. The token clearly is down since it has dropped below the Ichimoku Cloud. Adding to the bearish perspective, the Ichimoku indicator’s baseline and conversion line both loom above the current price, so accentuating the negative emotion.
Polkadot (DOT) is engaged in a merciless struggle with a bear. Once flying high with its ability to link many blockchains, the token currently struggles to reach the tough $7 resistance barrier. Investors are uncomfortable since it has dropped to as low as $6.16 during the last two weeks.
One could find a redeeming grace in the proximity to the lower Bollinger Band, which suggests oversold circumstances. Should buying pressure spike, this might set off a temporary bounce.
Holding The Line: $6.20 Support Zone In Focus
For DOT, the next several days might prove crucial. Everybody is fixated on the $6.20 consolidation zone, which will probably guide the direction of the next conflicts. Should DOT be able to maintain this ground, it may set the stage for a positive turnaround, particularly if it can surpass past the barrier at $6.30.
If the bears strengthen their hold, a violation of this vital support level might cause a depressing slide towards $6.00 or even less.
Analyst Sounds Bullish Trumpet Despite Bearish Symphony
Although Polkadot’s present market attitude seems negative, there is hope just waiting for us. Renowned crypto expert Michaël van de Poppe finds a rainbow within the storm clouds. He sees DOT’s slink towards the critical support zone as a perfect chance to build the asset at a discount.
$DOT reaching the crucial area of support and the area for accumulation.
Given the upcoming RWA narrative and the large number of projects within the Polkadot ecosystem, this one is going to be a great mover in the coming years. pic.twitter.com/2ssYuzGJtZ
— Michaël van de Poppe (@CryptoMichNL) June 15, 2024
This strategic approach fits the growing interest in Real World Assets ( RWAs) and the always growing universe of enterprises inside the Polkadot ecosystem. Van de Poppe thinks these elements together with a possible breakout could drive DOT towards notable expansion in the next years.
Van de Poppe’s study finds DOT’s essential support range to be $5.67 to $6.11. To keep optimistic momentum, he underlines the need of setting a better low within this zone.
The analyst also emphasises two major resistance levels DOT has to overcome for a victorious break-through. The first obstacle is about $9.30; the ultimate test is over $17.00, which would mean closing a price disparity.
Polkadot: Bumpy Ride Ahead?
Polkadot’s short-term future seems unknown. Although technical indicators show a negative inclination, the analyst’s point of view gives long-term investors some hope. The $6.30 support zone will be the arena where DOT’s fate will be decided in the next days.
Should the bulls be able to defend this area, a possible breakout driven by environmental development and the RWA story should not be far off. Should the bears violate this vital support level, DOT may experience protracted consolidation or even a more severe downturn.
Featured image from Shutterstock, chart from TradingView