On Wednesday, DOT was trading down by 3% amid wider weakness observed in risk assets. The sluggish performance comes after a busy week in the market, with daily trading volume shooting up by more than 50%.
Even with the recent dip, short-term traders are keeping a close eye on DOT after it broke out of a falling wedge pattern, which usually hints at the chance for more gains ahead. The positive vibes surrounding Bitcoin’s push to $69k also helped lift sentiment across the crypto space.
However, Polkadot traded mostly in the red over the past month, which led some to question whether investor interest is fading. After hitting a high of $4.57 over the weekend, DOT struggled to maintain momentum and dropped back below $4.50 on Monday.
This week’s action has been a bit choppy, with the price hovering just above and below the 20 and 50-day Simple Moving Averages (SMAs). Some analysts are suggesting that if sellers remain in control, the price could dip further, possibly heading towards the $4 mark.
That said, there’s still some optimism about DOT’s future. Some experts believe that Polkadot could follow a pattern similar to other altcoins, with price predictions ranging from $9.70 by the end of 2024 to even higher targets by 2025 if the current momentum holds.
Elsewhere, Bitcoin’s price has been consolidating near all-time highs, but recent data shows a cooling in institutional demand. For Polkadot, this cooling off in interest could reflect similar consolidation patterns.
Polkadot faces its own challenges, slipping below key price levels and seeing selling pressure in recent sessions. As Bitcoin‘s performance often sets the tone for the wider crypto market, Polkadot has been hovering between $4 and $5, but a push past its consolidation phase could attract new interest.
Source: Cryptocurrency - investing.com
