The last 7 days in the crypto market were the most volatile for months. We saw major coins tank and altcoins are under increasing pressure. But despite this, Polkadot has managed to stand strong, and despite mounting pressure from the bears, the coin is still holding above a very important support. But how long can it stay there? More to follow but a few pointers first:
DOT is above the $7 support level after a slight recovery today
The coin has the lowest weekly losses among all the top 10 major coins.
Consolidation above $7 could provide bullish momentum in the coming weeks
Data Source: TradingView
How will the DoT price move?
For now, we are all trying to gauge the directional trends in the market to see where everything is headed. While most of the coins have seen marginal gains, the overall market sentiment is bearish. Therefore, even if DOT shows great resilience above $7, it should be clear that downside risks are significant at this point in time.
For now, what the bulls can expect is a period of price consolidation. We are still not ready for a major bullish move, and there could be a short-term reversal of last week’s crash in addition to the relief rally seen in the last 24 hours.
To this effect, it would be best to watch how the price develops above $7. If we are able to see some firmness for at least a week, DOT could break down marginally. But if the weakness persists, DOT may eventually lose this support. This will inevitably trigger another downswing.
Is this the right time to buy a Dot?
Well, many analysts in crypto believe that the market may remain bearish for a few months. Although we may see a few bull runs here and there, most will largely be short-lived.
For this reason, if you are buying crypto for a short term investment, the current market conditions may not be favourable. But for long-term buyers, the DOT exemption makes it a very attractive asset right now.