Polkadot (DOT) Price Prediction: Will DOT Price Crash to 0?

Polkadot (DOT) has been facing a tough time in the market recently, struggling to move past a key resistance level.

Polkadot (DOT) has been struggling to gain momentum in the market recently. Despite an increase in on-chain activity, with over a 25% rise in active users since May 2023, the DOT price has faced challenges in maintaining momentum above key levels.

This rise in user engagement is generally a positive sign for network health and potential demand. However, the surge in activity has not directly translated into a stable price increase, indicating a disconnect between network usage and market sentiment.

DOT is currently oscillating between the $4 support level and the $5 resistance level. The inability to break past $5 suggests strong selling pressure, with sellers actively rejecting any attempts to push higher.

On the other hand, the support at $4 has proven resilient, as buyers have repeatedly stepped in to prevent a deeper fall. This price action reflects a tug-of-war between buyers and sellers, creating a narrow trading range. Should the $4 support be breached, the price is likely to fall to its multi-year support at $3.62, indicating a potential downward trend.

Predictively, the price movements of DOT are closely tied to these support and resistance zones. The stable volume increase in transactions hints at heightened market interest and activity, which may precede price shifts. If buyers can sustain pressure and push the price beyond the $5 resistance, DOT could see a strong upward movement.

However, if sellers regain control and break the $4 support, a deeper decline toward the $3.62 level is possible. The current neutral sentiment in the market suggests that external factors and broader market trends will play a significant role in determining whether DOT can break out of its current range or continue to face downward pressure. Overall, the price is likely to remain volatile in the near term as market forces struggle for dominance.

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