DOT Has Potential To Rebound For Current Position Into A Rally

Polkadot (DOT) is continuing its downward movement below the four-month trendline. The current price of DOT has found its place in the $6.45 zone. If the price of the crypto can rebound from this support, it could lead to some sort of revival.

Recent liquidations led to DOT dropping to its 17-month low on June 13. After this, there was a bit of an increase in buying pressure. Ultimately, however, the 20 EMA was able to control the buying rallies. In order for DOT to really see a comeback, the crypto will have to topple the 20 EMA.

Should the current candlestick close above the immediate support, it could also serve as a confirmation that DOT could see a rally.

After DOT’s most recent bearish flag, the price of the crypto dropped by nearly 10% to approach the $6.4 baseline. This means investors should watch for a close beyond the $6.45 – $6.5 range in order to establish the buying momentum.

On the other hand, if the DOT price fails to close beyond this range, it could position the crypto for a decline. If the price were to drop below $6.4 it could lead to an 8-10% drop in price for DOT.

According to CoinMarketCap, DOT is currently trading hands at $6.40 after a 1.28% drop in price over the last day and after a 6.60% drop in price over the last week.

The crypto’s 24-hour trading volume is also currently down 6.34% and is standing at $297,161,708.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.