Among the top performers, Polkadot exhibits a strong recovery potential as it tackles the supply surge. The DOT price is slowly but steadily gaining traction and drawing the attention of market bulls during a bullish turnaround.
While other altcoins struggle with a continued downtrend, Polkadot seems poised for an upward movement. The question arises whether this reversal will lead to a substantial surge in Polkadot's value, potentially surpassing the $10 mark. For a more comprehensive analysis, explore our long-term Polkadot price prediction.
Polkadot Price Analysis
Following a failed attempt to sustain an early 2024 bull run, a bearish reversal from $12 triggered a significant drop over two months. A 50% correction and the formation of a lower high impacted the 200-day EMA, leading to a bearish influence on the 50-day EMA and signaling a potential death cross.
Polkadot, with a market cap of $9.32 billion, holds the 15th position in the crypto market. Currently, the DOT price is trading at $6.86 with a daily movement of 6.30%.
The downtrend in the DOT price experienced a shift at the crucial $6 support level under the 200-day EMA. A double bottom pattern emerges with indications of an uptrend.
If Polkadot can attract enough demand to fuel a recovery rally, we may witness a breakout from the double bottom, potentially propelling the altcoin towards a high momentum recovery beyond $10, thereby avoiding the dreaded death cross.
Analysis of Technical Indicators:
- EMA Indicator: The narrowing gap between the 50-day and 200-day EMA signals a potential death cross.
- RSI: A bullish recovery in the daily RSI from oversold territory, coupled with a divergence in the double bottom, strengthens the chances of bullish reversal in the DOT price.
- MACD: The converging MACD and signal lines indicate a growing bullish momentum.
Possibility of Bullish Price Movement
In the event of a bullish reversal, the DOT price could target the $10 level or even the $12 milestone, representing the 100% Fibonacci trend-based level. However, a dip below $6 may lead to a decline in Polkadot's value, potentially dropping it to $5.
