The post Why is the Polkadot Price dropping? Analyst See 2x Surge! appeared first on Coinpedia Fintech News
Polkadot (DOT), recognized for its innovation in the crypto space, is facing challenges as its price has fallen from a high of $11.80 in March to its current level, marking a 50% drop. Despite a recent protocol upgrade intended to improve its functionality and scalability, technical analysis suggests that DOT’s price could decline by an additional 13% soon.
Polkadot’s Price Under Pressure
Polkadot (DOT), the leading Layer-0 blockchain, is facing a drop in demand this July, with activity on its Relay Chain and parachains expected to hit their lowest levels this year. This decrease is causing DOT’s price to hover in a narrow range, showing signs of increasing selling pressure.
Despite the price drop, which has seen DOT fall by 2.8% in the last 24 hours to around $5.68, the network’s on-chain activity remains strong. The daily holder count is at an all-time high of 1.3 million, with 321 new users added recently.
According to Polkadot Subscan, the daily active users have also increased by 19.21%, and on-chain volume has reached a record high.
Furthermore, data from Coinalyze shows that open interest is relatively low, with only a slight increase of 0.12% in the past day. Nevertheless, the Long/Short ratio stands at 2.83, meaning that 73.86% of traders are optimistic and betting on a price increase. This indicates that while the market is currently cautious, there is still a potential for a rebound in the future.
Analyst Predicts 2x Increase
Prominent analyst Captain Faibik, is optimistic about Polkadot, as he points out that DOT is in a falling wedge pattern, often linked to future price increases. This could be a chance for investors to buy before a breakout. Faibik believes that once DOT breaks out, its price could see a 2x surge.
Echoing a bullish stance, Crypto analyst Steve Courtney notes that Polkadot has support above $5.70, suggesting a potential upward move. The Stochastic Relative Strength Index (SRSI) indicates a possible rise, but resistance could still occur.
Currently, Polkadot trades at $5.34, which is down 2.7% in the last 24 hours, with a trading volume of $148.26 million and a market cap of $7.87 billion.
Also Read: Crypto News Today: Bitcoin, Ethereum Brace for Volatility as Fed Maintains Rates