The general crypto market is trading in the red today, which may be due to the FOMC minutes being released today. The anticipation has dulled investors’ interest bringing even the largest cryptocurrency, BTC, down by 2.38% in 24 hours. The minutes also kept Ethereum hovering below the $1,650 price mark in the same period.
According to CoinMarketCap data, the broader crypto market cap is currently down by 2.12%. Also; several digital tokens are presently red, including Polkadot. However, DOT has seen some significant improvements in the past 7 days, showing a price growth of 15%.
At the time of writing, the token trades at $7.05, with a market cap of over $8.1 billion. Although its 1-hour and 24-hour price change is negative, the chances of improvement are close, considering the significant developments and activities on the network.
Recent Price Trends Of Polkadot And Factors Driving Its Price
The price of Polkadot has seen several up-and-down trends over the years. At the end of December 2022, Polkadot was trading above the $4 price level and launched into January at $4.31, per historical data.Â
It maintained this price range until January 11, when it closed the day at $5.13. Its maximum price throughout the month was $6.69, visible on January 24 and 29. After these prices, Polkadot maintained a bullish trend and entered into February trading at $6.26.
Since the start of the month till date, the token has remained between the prices of $7.83 and $6.05. These figures reveal a gradual improvement in the token’s price compared to its starting price in 2023. This growth could result from increased investors’ and traders’ activities evident in trading volume.Â
Another notable influence driving the token’s price is its improved scalability and functionality. This is evident from the continuous improvements of the developers to the platform’s technology. For example, adding new features makes the coin more attractive to investors and users.
The general market sentiment is also another vital factor contributing to the growing price of the DOT token. Moreover, the Fear & Greed Index, currently at 59, indicates more interest from investors in digital currencies. The data shows that the value has passed the Fear zone since January 2023. These figures show that investors consider this DOT an investment option.
Polkadot Price Prediction
Polkadot is trading in the red today at $7.10, a decline from yesterday’s closing value of $7.25. However, it gained significantly in the past week, with a $7.54 closing value on February 20, the highest value for the week.
The Relative Strength Index (RSI) is at 57.50, which indicates price neutrality. The indicator points downwards, exhibiting a possible bearish turn in the short term. The support levels are $6.67, $6.90, and $7.08, while the resistance levels are $7.49, $7.72, and $7.90.
However, DOT is trading above its 50-day and 200-day Simple Moving averages (SMA), showing bullish sentiment and a recovery signal despite the current price slump. DOT’s Moving Average Convergence/ Divergence (MACD) is also above its signal line, expressing a bullish pressure.
If the bulls prevail, DOT will likely rest on the $7.08 support before it continues its rally above the $7.49 resistance level in the coming weeks.
Note that altcoins are highly volatile assets and might deviate from predicted price action. Proper research, risk management, and technical analysis are essential for all crypto investors.
