Polkadot's Moment of Success or Failure at $7: Can We Expect $30?

Live the Dot icon, watch the live broadcast to understand the bull market!!!

Polkadot [DOT] saw a significant reduction in market value last week, with its value dropping by double digits. However, that's not all. As the token is testing a key support area, investors may soon see a substantial rebound in DOT.

Polkadot is at a crossroads!

According to CoinMarketCap, the price of DOT fell over 17% last week. As of the time of writing, the token's trading price is $7.08, with a market cap exceeding $10 billion.

Meanwhile, renowned cryptocurrency analyst World Of Charts tweeted to reveal the movements of DOT. According to the tweet, DOT has rebounded from a key trading zone and is currently testing support levels.

Successfully retesting the support level could trigger a new bullish rebound, potentially pushing DOT to new highs. The analyst expects a bullish rebound to occur in the medium term, rising to $30.

Is there a possibility of success in testing, or will DOT decline further?

AMBCrypto's analysis found that although the token's price has suffered a significant pullback, its weighted sentiment has decreased after soaring on December 18.

The decline in this metric indicates that bearish sentiment towards a particular token is on the rise. In fact, during the downtrend, its social volume surged, indicating that investors are talking about Polkadot.

Nonetheless, one of Polkadot's derivatives indicators looks optimistic, suggesting that the aforementioned support has been successfully tested.

According to Coinglass data, the long/short ratio for DOT has increased over the past 4 hours. This clearly indicates that there are more long positions than short positions in the market—an indication of steadily rising bullish sentiment surrounding Polkadot.

It is worth noting that while the derivatives indicator suggests a successful test, the technical indicator Relative Strength Index (RSI) tells a different story. This metric has shown a decline over the past few days, with its value at 39 at the time of publication.

Whenever this indicator declines, it indicates that selling pressure on the token is increasing, which usually leads to price adjustments.

Live the Dot icon, watch the live broadcast to understand the bull market!!!