Can Polkadot Price Hit $10 As Bulls Struggle With Traders?

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As a seasoned crypto investor who has weathered numerous market cycles since the early days of Bitcoin, I find myself intrigued by the current state of Polkadot (DOT). After experiencing the exhilarating peak at $12 back in March 2024, I’ve watched with cautious optimism as the price dropped by a hefty 67%. However, the recent release of Agile Coretime and the bullish sentiment following the Fed interest rate cut and BOJ decision have ignited a spark of hope.

Since March 2024, the value of Polkadot has been declining, reaching a high of $12 at that time. Despite this downward trend, the network continues to progress and expand. Recently, the Polkadot team announced an update that will facilitate the next phase of Polkadot 2.0 upgrades. This announcement comes during a particularly optimistic period for the crypto market, following the Federal Reserve’s interest rate reduction on Wednesday and the Bank of Japan’s decision to maintain its current rates. The price action of DOT suggests it may be nearing its bottom. Could Polkadot be poised for an upward trend?

Bulls vs. Traders: Who Will Push Polkadot Price Up?

Amidst the launch of Agile Coretime, there’s a struggle unfolding between bulls (optimistic investors expecting prices to rise) and traders (those making short-term trades based on market conditions), particularly concerning Polkadot. Since its peak during the March mini-bull run, Polkadot has been dominated by bears (investors who believe prices will fall), resulting in a 67% decrease in its value.

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

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— Polkadot (@Polkadot) September 19, 2024

According to data from Santiment, as prices decrease, the number of open DOT contracts has been steadily decreasing since March.

Can Polkadot Price Hit $10 As Bulls Struggle With Traders?

When traders decide to leave a specific market, they might negatively influence the price due to increasing pessimism among market participants. Furthermore, reduced liquidity could make it challenging for big-scale investors to buy or sell their positions, thereby potentially affecting the value of DOT.

Despite some hesitation, investors in DOT are hopeful about purchasing opportunities at this year’s lows due to an increase in options interest within the last 24 hours. Furthermore, the long-term perspective looks bullish as there’s speculation that DOT may have reached its bottom. It’s also possible that a significant bullish reversal pattern is emerging, potentially driving the Polkadot price back up to $55.

Polkadot Price Analysis: All Eyes on $55, With a Stop at $10

Looking at recent trends, it appears that Polkadot (DOT) might be forming a potential base around the price point of $3.63. Currently, its trading value is close to a significant support area ranging from $3.63 to $4.36. This region has proven crucial in the past, as the price previously rebounded from here, first in 2022 and then again in 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.

In simpler terms, the current price is closely clinging to the lower limit of the Bollinger Band, which typically signals an overbought situation. Historically, this scenario tends to result in a correction, where the price may rebound and move back towards the middle or upper band, hinting at the possibility of a price increase.

Can Polkadot Price Hit $10 As Bulls Struggle With Traders?

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. 

Instead, it’s an excellent opportunity to amass holdings when the price dips into the $3.60 – $4.50 zone. But, should the price decrease further and the market mood changes unfavorably, Floki might drop down to $3.00.

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2024-09-20 08:46