The launch of Bitcoin exchange-traded funds (ETFs) in January didn’t succeed in driving crypto prices up, as traders were more concerned with the funds leaving the Grayscale Bitcoin Trust (GBTC), rather than the funds entering other ETFs. This indicates that traders were inclined to capitalize on the announcement and secure gains on their investments.
Polkadot (DOT) has weakened from $8.58 to $5.96 since January 11, 2024, and the current price stands at $6.80. A close above $7 will be the first sign of strength that could attract further buying, pushing the cryptocurrency toward $8. On the other side, if the price turns lower from $6.50, it will indicate that the sentiment remains negative which increases the risk of a break below $6.
But where is Polkadot’s (DOT) price going next, and what can we expect from the rest of February 2024?
Today, Crypto Lists will discuss Polkadot (DOT) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Polkadot enables a completely decentralized internet
- 2 Analysts expect continued decrease in the prices of various cryptocurrencies
- 3 Technical analysis for Pokadot (DOT)
- 4 Important support & resistance levels for Pokadot (DOT)
- 5 What speaks for the rise in the Pokadot (DOT) price
- 6 What indicates the downfall of Pokadot (DOT)
- 7 What do analysts and experts say?
Polkadot enables a completely decentralized internet
Polkadot is an open-source project that enables cross-blockchain transfers of any type of data or asset, not just tokens. The primary objective of Polkadot is to tackle the prevalent challenges in numerous blockchain networks, such as issues related to scalability, security, and interoperability.
Polkadot enables a fully decentralized internet where users retain complete control over their identity and data. It is important to mention that Polkadot can seamlessly adapt to advancements without requiring hard forks as new technologies emerge.
Another useful aspect of Polkadot is that it allows users to launch their own blockchains on top of the main Polkadot blockchain, and because of this, Polkadot is often called a “blockchain of blockchains.” Polkadot’s popularity is on the rise because it empowers Web3’s biggest innovators to swiftly bring their ideas to market. It’s noteworthy that Santiment, a prominent data analytics firm in the crypto sphere, recently stated that Polkadot boasts the most dynamic developer community in Web3.
The DOT cryptocurrency holds significant importance in sustaining and managing the operations of the Polkadot network. Through the possession and staking of DOT, users gain the ability to participate in voting for network enhancements, and the weight of their votes corresponds to the quantity of DOT cryptocurrency they have staked.
The period spanning from October 20, 2023, to December 26, 2023, marked a notably prosperous phase for Polkadot (DOT). However, despite the U.S. Securities and Exchange Commission (SEC) granting approval for the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) on U.S. stock exchanges, the price of this cryptocurrency has declined by over 30% since December 26.
Supply: 1,065,329,984 / 1,146,279,936
Release date: January 1, 2001
Description: Discover Dot on a Crypto Lists approved exchange!
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
Analysts expect continued decrease in the prices of various cryptocurrencies
Negative information is that Bloomberg recently reported that, based on a Deutsche Bank research report featuring a survey conducted from January 15 to January 19, most participants foresee a continued decrease in the prices of various cryptocurrencies. The current downturn in the cryptocurrency market can also be attributed to technical factors. However, whenever cryptocurrency becomes more accessible, its price tends to drop for two main reasons.
As per some crypto analysts, being traded on public markets results in more information being factored into the price, and the prevailing sentiment in the markets suggests that it’s not highly valued. Moreover, the transformation of the flagship cryptocurrency into a mainstream asset alters its original value proposition. It no longer belongs to the “outsider” asset class aimed at supplanting a significant government function.
Technical analysis for Pokadot (DOT)
Polkadot (DOT) has weakened from $8.58 to $5.96 since January 11, 2024, and the current price stands at $6.80. Polkadot (DOT) might have a hard time holding above the $6.5 level in the upcoming days, and a break below this level would indicate that DOT could test again the price level at $6.
Important support & resistance levels for Pokadot (DOT)
On this chart (the period from May 2023), I marked important support and resistance levels that can help traders understand where the price could move. DOT currently remains under pressure, but if the price advances above $7.5, the next target could be an important resistance level at $8. The current support level is $6.50, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $6. If the price drops below $6, which represents an important support level, the next target could be located around $5.50.
What speaks for the rise in the Pokadot (DOT) price
Polkadot holds a significant position in the blockchain sphere, boasting a strong ecosystem and an expanding community of developers and users. However, the regulations governing the cryptocurrency market are equally crucial for the future trajectory of DOT. The overall sentiment on the cryptocurrency market can also play a crucial role in DOT’s price trajectory, while DOT’s ability to maintain above $6.50 support is an encouraging sign, and it could potentially act as a strong foundation for a price bounce. A move above $7.5 would be beneficial for the bulls to take control of price movement.
What indicates the downfall of Pokadot (DOT)
The downfall of polkadot (DOT) can be influenced by a wide range of factors, including negative rumors, market sentiment, regulatory developments, technological advancements, and macroeconomic trends. The highly volatile nature of the cryptocurrencies may scare investors to sell DOT if some negative news happens in the cryptocurrency market and because of this, investing in DOT involves a significant degree of unpredictability and substantial risk. The current support level for DOT stands at $6.50, and if the price falls below this level, the next target could be $6. The price of Polkadot (DOT) is usually correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $40000 price level, that would certainly have a negative influence on the price of DOT.
What do analysts and experts say?
Polkadot (DOT) is demonstrating a correlation with Bitcoin and the broader cryptocurrency market and since January 11, 2024, the value of this cryptocurrency has declined by over 20%. According to a recent report by Bloomberg, referencing a Deutsche Bank research study conducted from January 15 to January 19, the majority of market participants anticipate a further decline in the prices of many cryptocurrencies, a trend that is certainly unfavorable for DOT. JPMorgan analyst Kenneth Worthington conveyed his belief that the catalyst driving bitcoin ETFs, which has lifted the ecosystem from its slump, will disappoint market participants in the coming months. Crypto analysts are concerned that should Bitcoin once again fall below $40,000, it could trigger a larger sell-off, potentially making it challenging for DOT to maintain its current price levels.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
