TL;DR
Polkadot (DOT) is trading at around $6.37 amid a market correction, with analysts predicting a potential rise if it surpasses key resistance zones.The Relative Strength Index (RSI) indicates the asset might be poised for an upward trend, with current levels suggesting it is not overbought.Bears Might Get Disappointed
Polkadot’s DOT is yet another cryptocurrency heavily affected by the ongoing market correction. It currently trades at around $6.37 (per CoinGecko’s data), representing a 2% decline on a daily scale and 14% on a two-week basis.
One popular analyst who touched upon the asset’s downtrend is the X user Yakuza. He
claimed that last week’s volatility interpreted DOT’s bullish mode but argued that “the party isn’t over yet.”
The analyst outlined an important resistance level of approximately $7.90, which might be followed by a substantial ascent above $13 if overcome.
“The bears are putting in extra hours to make sure we don’t scale these ranges before Q3. They’ll be extremely disappointed,” they added.
For their part, Block Diversity revealed entering the DOT ecosystem as an investor. The analyst hopped on the bandwagon when the asset was worth $4.90 and then increased the exposure when the asset reached $7.50 and subsequently dipped to $6.20. The X user stated that the stash will be kept for the long run:
“Messed up average buy approx $6.3. I am keeping this heavy bag for the long term. No sell in sight. PS: This is one of my biggest spot positions, followed by SKL, FIL, ZIL, ATOM, and XTZ.”
Previous Forecasts and Important On-Chain Metrics
Another analyst who envisioned a DOT rally in the event of overcoming a certain resistance zone is Michael van de Poppe. He outlined his prediction last week, envisioning a rally to as high as $17 should the asset cross the $9.30 mark.
Crypto Thanos chipped in, too, assuming that everything between $6 and $7.50 is part of DOT’s accumulation phase. The crypto enthusiast has high hopes for the token based on certain fundamentals such as “supersession of the old model of parachain auctions,” “radical change in the use,” reduction of inflation via the burning of fees, and others.
One major on-chain indicator signaling that DOT’s value might indeed be poised for an uptick is the Relative Strength Index (RSI). This momentum oscillator helps determine whether the coin is overbought or oversold, thus showing potential reversal points.
It ranges from 0 to 100, as anything above 70 suggests that a price correction could be imminent. Data shows that RSI has been hovering below that level since May 22, currently positioned at 32.
DOT RSI, Source: Crypto Waves