Polkadot (DOT) has managed to maintain its price stability during the crypto market dip lately. According to analysis from market analysts, this strength could be attributed to DOT’s oversold condition during the previous crash, setting the stage for a potential recovery.
Crypto Revolution Masters tweeted their confidence in DOT as a solid long-term investment, predicting that the crypto is poised to reach new highs in the coming months.
This projection follows a period where many investors managed to buy DOT at a lower price, presumably during a market dip. Consequently, this move could position them favorably if DOT’s value escalates as anticipated.
Polkadot Price Analysis
More Crypto Online provided a detailed analysis based on Elliott Wave Theory. According to their observations, DOT is experiencing a corrective wave (wave 2) after a steep initial decline.
$DOT: The price is holding really well during this sector-wide correction. A reason could be that the price was so oversold during the recent crash. If wave (2) is unfolding, then the price should find support between $3.80 and $4.22.#Polkadot #Altcoins pic.twitter.com/cHmqNSbkst
— More Crypto Online (@Morecryptoonl) August 7, 2024
This phase is crucial as it typically indicates potential stabilization or slight recovery in price. Moreover, they identified key support levels between $3.80 and $4.22. They suggested this if DOT’s price holds or rebounds within this range.
Additionally, the Relative Strength Index indicated that DOT was heavily oversold during the recent market downturn. This metric further substantiates the analysis by suggesting that the correction may be nearing its end. This in turn will provide a springboard for the next bullish wave.
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Key Levels Critical for DOT’s Price Action
According to the analysts, the support levels between $3.80 and $4.22 are crucial for DOT’s price action. If the token finds support within these levels, it could signal a potential bounce and renewed momentum for the Polkadot ecosystem.
Per CoinGecko data, Polkadot trades at $4.67, an increase of 1.83% in the past day. This price is well above the $4.22 support indicating recovery and further emphasizing Polkadot’s resilience in this market cycle.
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