As the broader crypto market continues to show some signs of life, Polkadot (DOT) has been consolidating gains around a very crucial support zone, a move that could trigger a 50% rally in the near term. The token is however facing several downside risks including slowing investor sentiment. Here are some notable highlights though:
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Polkadot (DOT) is holding strong above the crucial support of $15 and has done so for the past few days.
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At the time of writing, the coin was trading at $17 albeit it had dropped by about 6% in 24-hour intraday trading.
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If indeed these gains are sustained, DOT could surge by nearly 50% in the coming few days or weeks.
Data Source: Tradingview.com
Polkadot (DOT) – price analysis and prediction
The slump in January for DOT has been quite astonishing. In fact, between January 16 and January 24, the token lost almost 45% of its value in a massive bloodbath in the crypto market.
But we are starting to see some signs of recovery. Crucially, DOT appears to be consolidating gains above the $15 support. If indeed bulls can hold this threshold, then we can conceivably see DOT testing its 50-day SMA of around $25.
This will represent a rally of about 50%. But there is still a lot of downward pressure on DOT. While the $15 support is strong, if the token falls below that, a more decisive decline will be felt.
Why you must buy Polkadot (DOT)
In 2021, Polkadot (DOT) was one of the hottest altcoins in the market. Investors who got in early are still well in the money right now even with the slump.
Besides, the future of DOT looks quite promising indeed, and the recent slump gives you a good chance to get in on the cheap. You can be sure that the price will recover in the long run.