Polkadot (DOT), one of the most innovative crypto projects on the market, is currently facing a challenging situation.
Despite a recent protocol upgrade, which should naturally improve its functionality and scalability, Polkadot’s (DOT) price is predicted to experience a 13% downturn. Details of technical analysis agree this downward match is expected to continue in the short term.
The price of DOT has dropped 2.8% in the last 24 hours, trading around $5.68 as of writing. This drop occurred despite the positive on-chain metrics and the continued network developments. The daily holder count is at an all-time high of 1.3 million, with 321 new additions over the last 24 hours. Topping that, daily active users surged by 19.21%, and on-chain volume hit an all-time high (Polkadot Subscan). These metrics suggest that the network is active and well.
Polkadot’s Daily Holder Count, Source: Polkadot Subscan
A Price Crash Looms
Despite the bullish on-chain metrics, technical indicators point to Polkadot price continuing in a corrective wave downwards and expected to bottom by 13% later. Our prediction is based on the current bearish pressure on the market. The Polkadot price chart shows a downward trend, with the value consistently below the 50-day and 200-day EMAs. If the price breaks below the $5 support level, it may result in further downside movement to $4.91, which is the yearly low. However, if the bulls prevail, DOT price may encounter major resistance around $6.17 (50-day EMA) and a relatively small barrier around $6.77 (200-day EMA).
Polkadot Price Analysis Chart, Source: TradingView
For the rest of the week, the price of DOT is projected to increase. One prediction suggests the value of DOT could rise by 48.46% in the next seven days and reach $8.69, with another slightly lesser prediction pointing to a 5% increase, DOT potentially cruising $5.82 by the end of this week. Yet another source predicts that the price of DOT could double and reach the $20 mark by the end of the month, tomorrow, July 31.
If DOT Plays a Long-Term Game, Investors Might Take Profit
Despite the short-term bearish outlook, investors remain confident in DOT’s long-term prospects for a double-down. The Long/Short ratio is 2.83, with 73.86% of traders across exchanges betting Long on the asset, Coinalyze data shows. This indicates that the market may be fearful in the short term but promising in the long term.
Our Polkadot’s (DOT) technical analysis reveals a mixed outlook. The trend is bearish in the interim, meaning the price is expected to fall. This is because the 50-day moving average is currently below the 200-day moving average, indicating a downtrend. However, the silver lining here is that the MACD line is above the signal line, suggesting a build-up of bullish momentum, which could lead to a price increase in the long run. Looking at specific price levels, DOT faces resistance at $7.0, $6.5, and $6.0, meaning these levels may be difficult to break through. On the other hand, if the price falls, it’s likely to find support at $4.80, which could act as a safety net and prevent further decline.
The post Polkadot (DOT) Price Prediction July 30: Will Recent Upgrade Prevent Looming 13% Price Drop? appeared first on Coinfomania.
