Amid the recent euphoria surrounding the cryptocurrency market, Polkadot (DOT) stood out as one of the best performing assets, with a price gain of 107.5% over the past 30 days. The prominent crypto asset recently rose to $8.81, representing its highest price point in the past five months.
However, as the Polkadot market continues to be buffeted by positive sentiments driven by price action and recent network reports, crypto market expert with X username Rekt Capital has shared a valuable cautionary insight.
Polkadot needs to stay above $8.60 — Analyst
In one recent post on XRekt Capital highlighted a critical level of support needed for DOT to maintain its current upward trajectory. The analyst explains that following the recent 35% rally over the past seven days, Polkadot has now posted a weekly close above $8.60, with a previous resistance level now becoming support.
Rekt Capital predicts that the altcoin is likely to retest at this price level, in a move that previously led to a bullish run to the token’s current all-time high of $55.00 in 2021. However, the crypto expert notes that Polkadot has also experienced a failed retest on this support zone, sliding to $5.8 in April 2024, i.e. a potential drop of 32% compared to the current market price of the active.
Therefore, DOT bulls need to ensure a successful retest of $8.6 to ensure the coin maintains its current upward momentum. Importantly, a monthly close above this support level signals the potential for significant price gains in the coming weeks.
If this successful retest occurs, Polkadot is expected to rise to $12.61, indicating a possible 46.11% increase in the asset’s price. Interestingly, Rekt Capital’s DOT prediction is similar to that of fellow analyst Ali Martinez, who had predicted the coin would reach $11 after breaking through to $6 a week ago.
DOT price overview
According to data from CoinMarketCap, Polkadot continues to trade at $8.68, after gaining 2.12% in the past. At the same time, the altcoin’s daily trading volume has increased by 21.78% and is now valued at $795.37 million.
Data from Coincodex shows that overall market sentiment for the altcoin remains very bullish as evidenced by multiple factors including a Fear & Greed Index of 78 representing extreme greed.
Furthermore, adoption of stablecoins on Polkadot continues to grow as the total valuation of USDT and USDC on the blockchain network increases. recently reached $120 million. This development signals increased liquidity and trading activity that could drive demand and price increases for DOT.
Given these factors, combined with a ramp-up season and high market enthusiasm for the incoming Donald Trump administration, Polkadot is largely tipped to continue its upward trajectory. However, these projections are not guaranteed and are subjective to all market conditions.