Opinion: DOT is testing the moving average and may be about to rebound

CryptoPotato published an opinion article stating that the price of Polkadot has been falling since March, but the market may recover soon. According to technical analysis by TradingRage, the price of DOT has been creating lower highs and lows since being rejected by the $12 resistance level. The $9 mark has also been broken downward. The price is currently trading below the 200-day moving average, which is located around $7.2. However, it is testing the moving average, which is the case after rebounding from the $6 support area.

If the market successfully returns above the 200-day MA, it is expected to recover to $9 in the coming weeks. Many long positions were liquidated in the recent DOT price drop. The OI-Weighted Funding Rates indicator has dropped significantly, indicating that the futures market is no longer overheated on the buy side. Considering these funding rates and price consolidation, the market may be forming a bottom. Therefore, if there is enough supply in the spot market, the value of DOT may rise again.