The Polkadot (DOT) price is back above $7 after a volatile day on Thursday when the price dropped to as low as $6.79 before recovering.
DOT is currently oscillating between a crucial support level at $7 and considerable resistance at the $7.30 mark, thanks to the 200-day SMA.
Polkadot (DOT) Moving Sideways
The Polkadot (DOT) price has been moving sideways over the past few days, a far cry from its strong showing at the beginning of the month. Polkadot (DOT) had dropped to $6.42 by the end of April, a crucial support level. It was able to make an extremely strong recovery from this level, starting May with an increase of 7.48%, testing the resistance at $7 and settling at $6.90. DOT broke past the 20-day and 200-day SMAs the following day, registering an increase of 5.51% and settling at $7.28.
However, the price lost momentum on a volatile Friday, eventually registering a drop of 0.41%. Saturday saw DOT drop further, slipping below the 200-day SMA to $7.13 before recovering on Sunday and rising to $7.31, back above the 200-day SMA. Monday saw DOT back in the red as sellers pushed the price down to $7.13 and then to $7 on Tuesday. At this level, the 20-day SMA was acting as support, allowing DOT to stay at $6.98 after a fairly volatile session. Since then, the DOT price has consolidated around the $7 mark, rising to $7.05 on Thursday. The current session sees DOT at $7.08, with buyers currently in control.
Current Scenario For Polkadot (DOT)
As seen in the price chart below, DOT has been stuck between the support at $7 and the resistance at $7.30 for the past couple of days, with the price not making any substantial gains or losses. Any substantial price movements in either direction depend on DOT moving above or below the respective resistance and support levels. Should bullish sentiment prevail, DOT could test the resistance at $7.30, and if it moves past this level, it could climb to $7.50. However, there is little movement in the DOT price at the moment.
Should bearish sentiment prevail, DOT could drop to its support level of $7 or $6.40. The MACD is currently bullish, indicating that the DOT price could go on an upward trajectory.
Important Developments
Meanwhile, Polkadot has achieved another significant milestone with the implementation of Asynchronous Backing, helping improve blockspace allocation and overall network performance. Asynchronous Backing enables a highly optimized approach to validating parachain blocks by Polkadot’s Relay Chain. According to the network, Asynchronous Backing would lead to a two-fold acceleration in block production and a 3x-5x increase in extrinsic per block. It would also result in the heightened utilization of parachain blocks and lead to an increase in blockspace availability.
“Async Backing boosts throughput by 8x, without sacrificing security, paving the way for supporting Web3 applications across verticals such as gaming and DeFi. It brings Web2 scale into the reach of Web3, which is crucial for large-scale platforms like Mythical Games.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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