Polkadot (DOT) has been struggling to overcome a key resistance level, leading to concerns among investors about a potential price drop or a comeback. Currently priced at $4.12, DOT's price has dipped by 1.87% in the past day. Despite an increase in on-chain activity and user engagement, the price has faced challenges in maintaining momentum above key levels. It is currently oscillating between the $4 support level and the $5 resistance level. If the $4 support is breached, the price may fall to its multi-year support at $3.62, indicating a potential downward trend. If buyers can push the price beyond the $5 resistance, DOT could see an upward movement. The token has exhibited stability and outperformed its token sale price, but it still faces headwinds such as a correction from its all-time high, trading below its 200-day simple moving average, and a yearly inflation rate of 51.85%. However, the token's strong support levels, increased network activity, and positive movement compared to its token sale price suggest that a complete crash to zero is highly improbable. The future trajectory of DOT will depend on its ability to break key resistance levels, maintain user engagement, and macroeconomic factors and the performance of the broader crypto market.



Other News from Today