DOT, one of the long-standing Layer-0 projects in the cryptocurrency world, has managed to attract attention with a 5% increase observed over the past seven days in a volatile market. This price movement is notable as one of the few increases DOT has experienced after months of decline. The rising demand from buyers is also reflected in the charts, with the price approaching the upper boundary of the descending channel formed on June 7.
Will Polkadot Rise?
Polkadot has continued to remain within a descending channel since June 7. It is known that a descending channel is generally considered a bearish signal in the market.
When the examined asset moves within such a channel, the inability to break the upper resistance results in lower values both above and below the channel.
Within this mentioned price movement channel, the upper level of DOT indicates resistance in dollars. On the DOT side, the lower line reveals the support level seen at $4.77. As of the time of writing, DOT is trading at $5.93 after a 3% drop in the last 24 hours.
DOT experienced a 4% increase in its price last week, raising curiosity about whether the upper line of the channel will be broken.
On the other hand, the Chaikin Money Flow (CMF) indicator, which shows the cash flow in the market, also seems to support the possibility of this happening. Again, as of the time of writing, an increase was observed in DOT’s CMF.
Despite all this bullish scenario, DOT’s RSI value has dropped to 30.79, which almost indicates overselling. It remains to be seen where the price might go despite the heavy selling pressure.
DOT Price Prediction
A potential decline in the uptrend could end the weekly rise experienced by DOT, and as a result, the cryptocurrency might show a negative outlook again. Consequently, the price could drop to $5.95 – which is currently at $5.93 – and further declines could be seen if it closes below this region.
On the other hand, with the rise in demand, the weekly trend on the DOT side could be maintained, and it could rise to the $6.27 level.
