Polkadot (DOT) price prediction: Can the altcoin rebound to $10.80?

DOT prices have declined by 4.38% in the past day as bearish forces continue to gain stronger market control.

Polkadot (DOT) prices have fallen by 4.38% in the past 24 hours as bearish forces continue to gain stronger market control. According to data from CoinMarketCap, DOT’s price fall only furthers the asset’s poor form in recent days as indicated by the 7.99% loss in the last week. However, market analyst Ali Martinez has pointed out that this downtrend could soon result in something positive.

Following the intense price volatility that swept across the crypto market last week, Polkadot slipped below a key support level at $4.47, signaling an increased bearish pressure. According to Ali Martinez, the altcoin appears to be heading to a crucial support zone at $3.80, which could potentially halt the current decline.

> "Polkadot is showing signs of slowing down as it approaches the critical support zone, which could be pivotal in determining the next move for DOT."

[email protected] December 11, 2023

Based on the presented analysis, DOT is undergoing a wide range of consolidation moving in a parallel channel that stretches as far back as July 2023. Therefore, if the current downtrend persists, the altcoin will likely retest at $3.80 which represents the lower boundary of this parallel channel.

According to historical patterns, market bulls are expected to step in at this support zone and ramp up demand to prevent further decline. Martinez explains that if this projection occurs, Polkadot could experience a price bounce to around $6.40 i.e. midpoint of the parallel channel.

With strong buying pressure, DOT investors could expect a price rise to around $10.80 i.e.the upper boundary of the parallel channel, representing a potential 180% price gain. On the other hand, if DOT bulls fail to hold the $3.80 support level, the altcoin could slide to $2.30 with potential price targets around $1.25-$1.45.

Polkadot Price Today: DOT Slides Despite Drop In Trading Volume

Polkadot trades at $4.32 at press time following a daily price decline of over 4% as earlier stated. In tandem, the asset’s trading volume has reduced by half in the past 24 hours and is now valued at $145.81 million. A drop in price with falling trade volume can signal a waning selling pressure presenting the potential for a price reversal as postulated by Ali Martinez.

Looking at the technical indicators on its daily chart, the Relative Strength Index (RSI), used to determine overbought or oversold market conditions, currently stands at 39 but is headed downward. This reading adds more support for DOT’s predicted bullish rebound. However, the asset’s price is far below its 100-day Simple Moving Average (SMA) suggesting the projected price rally may not occur immediately.

Meanwhile, with a market cap value of $6.72 billion, Polkadot continues to rank in the 30 largest cryptocurrencies in the world.