Polkadot (DOT) is under great trouble right now while technical indicators predict a dark future. The evident downturn of the token—that of a declining Ichimoku Cloud—has dropped below The baseline and conversion line of the Ichimoku indicator both point above the current price, therefore emphasizing negative feeling.
Previously driven by its ability to link several blockchains, Polkadot is presently struggling with a tenacious barrier above $7. Its value dropped to a low of $6.16 last fortnight, which worries investors.
Polkadot Discount Opportunity Seen
Still, there might be a benefit. The token’s proximity to the lower Bollinger Band suggests oversold circumstances, which, should buying pressure rise, could cause a temporary bounce.
For DOT, the next three days will be vital as the $6.20 consolidation zone comes under close inspection. Maintaining this level might open the path for a positive turnaround, especially if DOT crosses the $6.30 resistance. On the other hand, neglecting to keep this support can cause a decrease below $6.00 or less.
Though there is a gloomy attitude, notable crypto expert Michaël van de Poppe sees possibilities in DOT’s current situation. He sees the declining approaching a crucial support zone as a chance to get the asset at a discount. Van de Poppe thinks that major long-term development could be driven by the growing interest in Real World Assets (RWAs) and the widening Polkadot ecosystem.
Van de Poppe says DOT’s essential support range is between $5.67 and $6.11. Maintaining a higher low within this zone will help to generate brish momentum. He also points out two significant areas of resistance for a probable breakout: one roughly at $9.30 and another more challenging near $17.00.
Long term of Polkadot is yet unknown. Technical signals lead to a negative trend, although van de Poppe’s research shows long-term investors in a good perspective. The $6.30 support zone will be one of the primary battleground for the following days. Should the bulls effectively defend this level, a breakthrough driven by environmental development and the RWA narrative may be right around here. Should the bears prevail, DOT might have to cope with extended consolidation or more severe correction.
