Will the Polkadot (DOT) price drop to $5 or will it skyrocket past $7?

Since mid-summer 2022, Polkadot (DOT) has been in a downtrend and has been much more impacted by the bear market than most other major altcoins that are currently on the market. However, the top cryptocurrency, led by Gavin Wood, has had some decent rallies this new year.

New Polkadot Developments

Polkadot, which describes itself as a network that allows blockchains to communicate and conduct transactions without the need for third parties, is getting prepare for their list of events at ETH Denver 2023. The Polkadot team has planned a program of BUIDLing summit conference and side community events to take place between February 28th and March 5th.

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Polkadot has also performed well in terms of development activities. The cryptocurrency has reportedly set the pace for considerable development activity over the past month, as stated in a study just published by market intelligence platform Santiment. The tool analyzed the number of contributions made on the GitHub platform to assess the level of developer activity on different blockchain networks.

However, when it comes to the value proposition of its native token, DOT is experiencing a short-term upward trend that started in January 2023. The Polkadot (DOT) price, which is now trading in an ascending channel , recently tested the upper trend line as resistance at $7.74.

Polkadot Price Action (DOT)

While DOT experienced some weariness on Friday — dropping more than 7% at one point — the effect was widely felt across the cryptocurrency market, impacting major assets such as Bitcoin (BTC) and Ethereum (ETH). This was due to growing concerns about rising inflation, highlighted by the release of US PCE data by the Bureau of Economic Analysis.

Furthermore, despite the fact that there are experts and industry analysts who believe that the token would likely rebound to the upper trend line and break above $7.74, the bullish thesis could be invalidated if the price dips below the three exponential moving averages (EMAs). . A drop projection of $6 or even less than $5.5 could result from this.

At the moment, the price of Polkadot (DOT) is trading at $6.64, which is down 7.60% over the last 24 hours, in contrast to a drop of 10.46% over the past seven days, according to cryptocurrency market tracker CoinGape. .

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Pratik has been a crypto evangelist since 2016 and has been through almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin halving so far – it has seen it all.

The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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