The broader cryptocurrency market seems to be gearing up the bearish sentiments. However, there are still major cryptocurrencies recording minor losses over the period. Few lesser-known altcoins like ANKR, Meridian Network (LOCK), Bao Finance (BAO) ILCOIN (ILC), Alpha Finance Lab (ALPHA), and DFOhub (BUIDL) are showing massive gains.
At press time, Polkadot is the top gainer among the top 10 cryptocurrencies with a more than a 6% rise.
Polkadot price had a slow start to 2021 as the price was trading with low volatility. DOT price had a massive rally and hit an all-time high of $19.4 with a market capitalization of $16 billion. Altcoin also gained the position as the 4th largest digital asset. As per the 1-week chart, DOT is still up by 60% despite the recent sell-off.
Dot Price Analysis: Polkadot Risks Sharp Drop
After the massive rally of the past few days, Polkadot (DOT) has entered a minor correction. The altcoin had today dipped to the 38.2% Fibonacci retracement level at $14.7259, which is acting as a strong support.
At present, Polkadot is trading at $16.76 USD with a 24-hour trading volume of $4,578,486,661 USD. The altcoin is up 6.68% in the last 24 hours. The current CoinMarketCap ranking is #4, with a market cap of $15,128,893,037 USD.
According to technicals, If the bulls can push the price above $19.40, the uptrend could resume with the next target levels at $24 and then $30. On the contrary, if the DOT/USD pair rebounds off the 20-day EMA, the uptrend remains intact but if this support breaks, the decline could extend to $11.8383. The deeper the correction, the longer it is likely to take for the uptrend to resume.
On the daily chart, Polkadot price has smashed through the 78.6% Fibonacci level of its latest rally at $16.8 and it’s currently holding the 61.8% level at $14.7. The digital asset shows clear signs of a potential correction period down to $10.
If the bears sink the price below $14.7259, the selling may intensify and the pair could drop to the 50% retracement level at $13.2821 and then to the 20-day EMA ($12.32). However, there is a chance for Polkadot price to rise higher in the short-term before another leg down
Dot Price Surge Towards the $18.93 Level or Drop Below $14.31?
According to crypto Analyst Romaxo, DOT price has reached a decision point near the $16.7 level. The price trajectory is expected to move towards the $18.93 level or drop towards the $14.31 support if the up-channel price breaks out.
The cryptocurrency is testing the support at $16.5. If this support level does not hold along with the channel’s lower boundary, the price will drop to the $14.31 support, or possibly towards the $12.7 to $14.30 region. An upward move will allow the cryptocurrency to test $18.93 with a bullish continuation in the channel.