For more than a week, Polkadot has traded within a narrow price range of between $5 and 5.5. The current sideways market trend followed the recent aggressive push to the downside between November 8 and 9, which resulted in DOT losing over 30 per cent of its value.
The recent sideways market has been due to a combination of factors that have kept most investors out of the crypto markets. Following the collapse of FTX, most investors sold off their digital assets, which resulted in most crypto prices falling, including Polkadot. Unfortunately, these investors have not yet returned to reinvest in the industry.
There has also been fear that other cryptocurrency firms may be on the verge of collapse. In the past 48 hours, reports of BlockFi filing for bankruptcy have added to these fears, following weeks of similar instances where exchanges have frozen withdrawals. Therefore, the entire industry has been in shambles for the past two weeks, resulting in the current sideways market for Polkadot due to its significant correlation with the industry.
Polkadot Price Prediction
Looking at the chart below, Polkadot’s price has also struggled to break above the $5.3 price level for more than a week, instead trading along the support level. However, in today’s trading session, Polkadot price has gone up by more than 3 per cent, the highest price gain in a day since November 10.
Therefore, based on today’s aggressive bullish push, there is a high likelihood that we might see the trend continuing in the next few trading sessions, which means Polkadot will finally break the $5.3 price level to the upside. There is also a high likelihood that we might be at the onset of another bullish trend that will see the Polkadot price hitting the $6.3 resistance level and possibly trading above it. However, a drop below $5 will invalidate my bullish trend analysis.