With the critical support level of the Bitcoin price being lost, losses in altcoins have accelerated. Long-term supports have been broken. It is advisable for investors to be cautious as such movements usually lead to new yearly lows. Moreover, the upcoming developments in the coming days are not favorable for cryptocurrencies.
Polkadot (DOT)
When the Russia-Ukraine war started, cryptocurrencies faced massive sell-offs. Now, there is a greater risk of a larger conflict in the Middle East. The inclusion of Iran may cause other fragile regions around the world to become active. Therefore, the flight from risk has accelerated, and altcoins are losing important support levels.
The price of DOT Coin has fallen below the decreasing trend line since February and lost the $4.3 support. The loss of the long-term horizontal support area opened the door to deeper lows. Meanwhile, to turn sentiment positive, the Polkadot Foundation launched a $41 million venture fund.
However, despite the recent news, the closings below $4.3 continue. The biggest factor in this is the rapid fluctuations in BTC price and ongoing negativity.
DOT Coin Price Predictions
Readings on the weekly chart are negative as the trend line lost in February was also rejected in July. Therefore, in August, the price fell below the $4.4 support area. The loss of the critical support level maintained throughout 2023 resulted in the current price below $4. In September, the breakdown was confirmed, and new lows are now possible for DOT Coin.
So, what will happen next? There is no longer a new horizontal support area at the current level, and Fib retracement levels can be useful for the bottom. The 1.27 Fib retracement level indicates a level of $3.2, which is 15% below the current price. If we see closings below this region, the price could drop to $1.9. This represents a loss of about 50% from the current price.
The all-time low level is at $2, and a possible descent to the second dip area will cause the DOT Coin price to make a new historical low. It wouldn’t be surprising as many altcoins have been updating their ATL levels for months. The RSI indicates a continuation of the decline.
