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.
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.