Polkadot (DOT), a well-known name connected to different blockchains, is facing some challenges.
Notably, technical indicators are sending bearish signals as the price of DOT slipped below the Ichimoku Cloud.
However, an analyst believed a bullish move for the price of Polkadot (DOT).
Polkadot (DOT) Price Struggles: Can Bulls Reclaim $7 or Will Bears Drag It Lower?
Polkadot (DOT), the blockchain connector, is facing bearish sentiment after its price hit $7 on June 07.
Since then, DOT has maintained a downward movement, worrying investors.
However, there’s a glimmer of hope. Polkadot (DOT) price is trading near the lower Bollinger Band, an indicator that suggests it might be oversold.
Moreover, the move could lead to a short-term price jump if more investors buy in.
The next few days are crucial for DOT. The price needs to hold above $6 to establish a base for a potential climb. If it breaks past $6.30, a bullish reversal could be in sight.
However, if the price falls below the $6 mark, things could get worse.
The bears could drag DOT down to $5.50 or even lower.
Crypto Analyst Sees Bullish Future for Polkadot Despite Short-Term Struggles
Popular crypto analyst Michaël van de Poppe highlighted a buying opportunity in Polkadot’s recent dip.
Interestingly, this analyst believed the current price drop places DOT in a “crucial support zone.” So, the position makes it an excellent time to accumulate the asset at a discount.
Van de Poppe pointed out two key factors that could fuel DOT’s future growth: the rising interest in Real-World Assets (RWAs) and the expanding Polkadot ecosystem with its numerous projects.
Furthermore, he suggested that these factors, combined with a potential price surge, could propel DOT to significant gains in the coming years.
Van de Poppe identifies a critical support range for DOT between $5.67 and $6.11.
Notably, the analyst emphasizes the importance of the price establishing a “higher low” within this zone to maintain positive momentum.
However, DOT must overcome two resistance levels for a successful breakout. The first resistance is around $9.30, while the main one lies near $17.00.
Polkadot (DOT) Price Outlook: Bullish or Bearish?
Polkadot’s immediate future remains unclear. Notably, Technical indicators lean bearish, but analyst Michaël van de Poppe offers a ray of hope for long-term investors.
The coming days will be pivotal as the $6.30 support zone becomes the battleground for DOT’s fate.
If bulls can hold this ground, a potential breakout could be fueled by the expanding Polkadot ecosystem and the rising interest in Real-World Assets (RWAs).
However, breaching this critical support region could lead to extended consolidation or even a sharper price decline.