The Polkadot (DOT) price managed to stay above $6.40 over the weekend after enduring a highly bearish end to the week, during which sellers managed to push the price below $7.
DOT registered a drop of almost 7% on Friday, falling as low as $6.01 before settling at $6.66.
Polkadot (DOT) Stays Above Crucial Level
Polkadot (DOT) managed to stay above $6.40, a crucial support level, as buyers pushed the price up by 2.35% on Sunday. Despite starting the week on a positive note, DOT was extremely bearish last week. On a highly volatile Monday, DOT went as high as $7.19 before dropping to $7.01, registering an increase of just 0.29%. At this point, DOT was able to stay above $7, a level where it had support. DOT built on this support on Tuesday, rising by 2.41% and moving to $7.17. An increase of 1.06% saw DOT rise to $7.25 on Wednesday.
However, this is where things changed for DOT. With the 20-day SMA acting as resistance at this level, DOT could not go higher and dropped by 1.57% to $7.13. Selling pressure intensified on Friday as sellers took control of the market, pushing DOT down by almost 7% to $6.66. However, Friday also saw DOT go as low as $6.06 before recovering. This drop saw the price fall below the 50-day SMA and the crucial $7 level.
DOT also entered the weekend in the red, dropping by just over 4% to $6.38. However, DOT had strong support at this level, and with buyers entering the market on Sunday, it registered an increase of 2.18% to $6.52. The current session sees DOT back in the red, with selling pressure having pushed the price down to $6.45 at the time of writing.
What Next For Polkadot (DOT)
Let’s look at the key Polkadot (DOT) levels that can dictate any future price movement. There is a strong level of support at $6.40, which has been tested multiple times, as recently as the weekend, and held. Looking at resistance levels, DOT faces resistance at $7, $7.20, and $7.50. Should sellers manage to breach the support at $6.40, we could see DOT drop to $6.
Source: TradingView
If DOT manages to recover, its first target would be $7 and $7.20. Should it manage to get past these levels, we could see it test the resistance at $7.50. However, looking at the DOT price chart, we can see that bearish sentiment is currently dominating the market, with technical indicators such as the MACD also flipping to bearish, indicating significant selling pressure.
Polkadot (DOT) Making Significant Strides
While DOT’s price may be muted, Polkadot is making significant strides in the tokenization of real-world assets. Many industry experts believe Polkadot can potentially be a market leader in tokenizing RWAs, with many projects in its growing ecosystem supporting their view. Polkadot’s architecture is known for its scalability and interoperability. The protocol’s JAM whitepaper could help further solidify its position in the RWA tokenization space.
Polkadot’s Software Development Kit (SDK) has also become a popular tool in the crypto space. Polkadot’s SDK allows developers to create projects that can facilitate the integration of RWAs into Polkadot. Notable projects in the Polkadot ecosystem focusing on RWAs are Energy Web, Xcavate, Phyken Network, and Centrifuge.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
