Over the course of the day’s trading, the larger cryptocurrency market continued to fall, with Bitcoin falling into the $41,000s and Ethereum remaining just above $3,000. Cardano is down 4% to $1.36, and Litecoin is down 2% to $137.39 among altcoins. Terra, on the other hand, continued to gain traction, climbing 2% to $80.
DOT Price Action
Polkadot price analysis has been experiencing a series of falls since January 17 and has continued to tumble over the previous 24 hours.
However, the current trend appears to be primed for a quick reversal once buyers regain strength. Before rising up towards the January high of $30.95, DOT will target the critical 25 and 50-day exponential moving average (EMA) at $25.55.
Profit taking and sell-offs are likely around $29.16 as resistance, with profit taking and sell-offs also expected around this area. The current relative strength index (RSI) of 42.35 also indicates a reasonable market valuation for DOT, making now an excellent time to buy.
DOT Price Breakout on the Cards?
Justin Bennett, a well-known crypto strategist and trader, predicts a major breakthrough for Polkadot, an interoperability blockchain (DOT).
Polkadot’s price action is coiling as it trades within a bullish continuation pattern, according to Bennett in a new strategy session.
“The fact that this is a falling wedge, which is inherently a bullish pattern, and we also have the market in a macro uptrend, I do have reason to believe that this is more likely to break higher than lower.”
Polkadot is expected to conclude its short-term slump and break out of the falling wedge during the second week of February, according to Bennett.
When it comes to prospective targets for Polkadot, the crypto expert says that DOT has the ability to spark a 78 percent increase if it can break through the wedge’s diagonal barrier.
While Bennett is bullish on DOT in the long run, he believes the crypto asset will fall dramatically in the coming days before recovering and attaining his targets.
He says DOT could retest support at $20 and break from there and then starts to move higher up toward $32, $38 and $45 and eventually later this year we get a move up into this resistance area at $65.