Polkadot Price Analysis: DOT Holds Above $7 Despite Bearish Week
The Polkadot (DOT) price managed to hold above the crucial $7 level after a bearish week that saw the asset register a sharp decline from $7.63 to $6.97 as sellers took control of the market.
Polkadot (DOT) stabilized over the weekend, with buyers entering the market and pushing the price to $7.05 on Saturday.
Polkadot (DOT) Stays Above Crucial $7 Mark
The Polkadot (DOT) price was in the red for almost all of last week, dropping to $6.97 by Friday. Last week, we also saw a significant jump in volatility as selling pressure increased after DOT failed to get past the resistance at $7.60. As shown in the price chart, DOT now finds itself trapped between $7, a level where it has found support, and $7.60, where it faces significant resistance.
Polkadot (DOT) started the previous week on a positive note on Monday, registering a marginal increase of 0.53% after a highly volatile day that saw a high of $7.78 and a low of $7.37. However, DOT managed to stay above the 200-day SMA. Tuesday saw sellers take control of the market after DOT failed to break the resistance at $7.60. As a result, DOT registered a drop of 3.54%, slipping below the 200-day SMA to $7.36. Wednesday saw yet another day of selling pressure, with DOT declining by 2.58% and settling at $7.17, just above the 20-day SMA.
Source: TradingView
Buyers failed to reverse the trend on Thursday and DOT dropped below the 20-day SMA and the 50-day SMA to $6.99. Friday saw yet another volatile session, with DOT dropping as low as $6.80. However, it was able to recover and eventually settle at $6.97. The weekend started with a recovery, as buyers entered the market and pushed DOT back above $7 to $7.06. Sunday saw DOT back in the red as it dropped back to $6.99. The current session sees buyers back in control, with DOT up by 2% and trading at $7.13.
A Critical Point
The Polkadot (DOT) price stands at a crucial point. As we can see from the price chart, DOT faces strong resistance at $7.60, which is where the 200-day SMA is positioned. If DOT can test this resistance level and push past it, we could see it break out of its current pattern and rise to $8. The price chart also shows support at $7, which has helped DOT recover during the ongoing session. However, if sellers regain control and break this level of support, DOT could fall back to $6.40.
Polkadot (DOT) Remains Significantly Undervalued
Meanwhile, renowned cryptocurrency analyst Michael van de Poppe has stated that Polkadot remains undervalued despite significant technological advancements and strategic focus areas. The analyst highlighted Polkadot’s recent JAM protocol upgrade, calling it a major upgrade that enhances the network’s already impressive capabilities. The upgrade also aligns with Polkadot’s focus on real-world asset (RWA) integration, with van de Poppe also highlighting six RWA-focused projects within the Polkadot ecosystem.
“$DOT is one of the blockchains that’s heavily undervalued. They released their JAM Upgrade & the project is focusing on RWA.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.