Since early this month, Polkadot (DOT) has been moving around $4.0 and $5.0 price zones, showing that it has entered a stagnation phase. Today, market analyst Ali Martinez pointed out how DOT may move soon.
Polkadot to retest $3.74 support
In a post on X today, Ali talked about a recent pattern that Polkadot has been forming. The pattern in question is a death cross pattern. While the altcoin has been experiencing a downward momentum (as highlighted in Ali’s chart), technical indicators show a potential retest to a key support level.
Polkadot, which currently trades at $4.768, could witness a further price drop due to the formation of “the death cross pattern” appearing on the weekly chart. Technical indicators show significant bid interest around the $4.4 level, as per Ali’s chart. However, the presence of support at $3.74 shows that a further price decline to this level could potentially set the foundation for future price upward movement.
The analyst expressed confidence in the downtrend. He sees it not as a cause of concern but rather as an opportunity that traders should capitalize on to strengthen their long-term holdings.
While the appearance of the death cross pattern signals a likely prolonged downward momentum, it is an opportunity for investors to accumulate more Polkadot.
Polkadot price updates
Recently, DOT has been displaying indicators of market correction, with its price slumped 24.9% over the past 30 days. These figures indicate that selling pressure is prevailing in the market.
However, technical indicators show that the asset is beginning to form an ascending triangle, suggesting a potentially bullish pattern could be on the horizon. This is a classic formation that normally signals that the market could experience some uptrend in the coming weeks.
However, before the altcoin experiences a market rally, technical indicators indicate that it may encounter a fall to the support level of $3.852 soon.
This price drop is a natural part of market movement, allowing the token to develop essential momentum for a bigger uptrend. After the fall, DOT’s price is anticipated to rise to higher heights.
The upcoming drop is expected to allow market participants the opportunity to accumulate DOT tokens. As acquisitions continue, the market will experience an eventual price surge.
The derivative market currently shows bullish sentiment for DOT. Traders are placing long positions on the asset. Polkadot is currently seeing a positive Open Interest-weighted funding rate. The funding rate currently reads at 0.0050%, implying that buyers are paying premiums to maintain their position. This indicates that investors are optimistic about Polkadot and confident about its future price trajectories.
Before this upward momentum occurs, Polkadot may witness a significant decline to the support level of $3.852, as backed by Ali’s projection.
