The Polkadot price prediction has flipped bearish due to the rejection from a critical level. DOT crypto price surged after breaking out of the downwards trendline, but the bulls failed to reclaim the $9.68 level. This resulted in a massive sell-off that plummeted the price to its previous support of $6.60.
Crypto markets have turned red once again as the Bitcoin price dipped below $20,000. Although the biggest cryptocurrency is now trading above $20,000, investors are still cautious in hitting that buy button. The market risk-off approach is likely to sustain until BTC reclaims the $25,000 level.
At the time of writing, Polkadot’s price is trading at $7.20. The price has increased by 2.86% within the past 24 hrs. However, on the higher timeframe, the coin is still 87% down from its November 2021 all-time high of $55. The lack of network activity and slow development have both contributed to the negative DOT price action.
According to Polkadot news, the Messari stats show that the Polkadot blockchain is one of the most energy-efficient networks. As of 27th July 2022, the annual energy consumption of the whole blockchain has been only 0.1 GWh. You can invest in Pokadot by signing up on the top crypto exchange Binance.
A look at the DOT USD price chart shows that the price surged to the 0.618 Fib retracement level after breaking the downtrend. However, the bulls lost momentum around this level and failed to break above despite multiple attempts. After a massive pullback, the price finally found support from the major demand zone that lies below $7. Considering the overall market conditions, a retest of the $6.50 support is still very likely.
A breakdown below the $6.50 support level would make Polkadot price prediction extremely bearish. The only way to avoid this bearish outlook is to break above the $9.50 level, which won’t be easy in the current market scenario. Due to a strong correlation between DOT and BTC prices, traders must also keep an eye on the Bitcoin price action.