A Temporary Setback or More?

Polkadot (DOT) has taken a hit, with its price dropping sharply and leaving many to wonder what’s next. This isn’t just a small dip—it’s a major setback for the cryptocurrency, causing some concern about its short-term future.

Before this drop, Polkadot had been trading above $6, riding a wave of optimism, with its price rising over 12% amid hopes that a Polkadot exchange-traded fund (ETF) could soon launch in the United States. The excitement kicked off last week when digital asset manager 21Shares filed with the Securities & Exchange Commission to launch a Spot Polkadot ETF.

Polkadot Price: Key Levels to Watch

Polkadot is currently in a correction phase after reaching a high. The price is currently trading near the $4.80 level and is trying to break above the $5 target. DOT closed the previous session at $5.14 and key resistance levels are at $6.10 and $5.94.

The coin’s 1-month high sits at $7.99 and the immediate support levels are at $4.55 and $4.28. With the current 1-month low at $3.89, it is important to watch for any signs of a rebound or further downside pressure as Polkadot moves through these critical levels.

Source: CoinMarketCap

A key support level for Polkadot is also around the August low of $3.60. A break below this could signal the start of a larger decline. This level could be the deciding point for determining Polkadot’s next direction.

Will DOT Hit $50?

Polkadot’s all-time high (ATH) of $55 was reached on November 4, 2021. Despite the decline, some experts are positive about its future. An analyst believes Polkadot has the potential to see a major price surge, possibly surpassing the $50 mark by the end of 2025. In a post on X, Marks previously stated that with multiple breakouts, DOT is set for another rise, potentially reaching $53.385 or even higher.