Polkadot (DOT) Showing Signs Of Recovery After Positive Weekend

Polkadot‘s price seems to be bouncing back. It managed to halt its slide after encountering solid backing at the $6.40 level.

For about a month, DOT has been experiencing a decline in value, reaching a significant turning point. If it manages to break through this point, there’s a good chance it will soar above the $8 price level.

Polkadot (DOT) Recovers Over Weekend

Has DOT‘s price trend taken a positive turn? The daily price chart indicates a noteworthy rebound during the weekend. After experiencing a substantial decline from $8.38 to $6.40 last weekend, DOT made a remarkable recovery of 7.19% on Sunday, reaching $6.86. Nevertheless, the resistance level presented by the 200-day Simple Moving Average (SMA) proved challenging, causing DOT to slip back into negative territory on Monday, dropping 2.19% to $6.71. Despite a brief surge to $7.21, bearish sentiment prevailed, resulting in a further decline of 1.79% by Wednesday.

Despite hitting a strong support level at $6.40 on Thursday, DOT bounced back with a 3% increase to reach $6.79. However, it failed to surpass the resistance at $7 and retreated to $6.68 by Friday. Examining the price trend, there appears to be a prolonged phase of equilibrium around $6.40 and $6.60, implying an upcoming struggle between buyers and sellers aiming for dominance over the weekend.

Over the weekend, DOT saw a significant gain of 8.38% on Saturday, causing it to surpass its 200-day moving average (SMA) and reach a price of $7.24. The next day, Sunday, brought about a decline of 1.38%. However, with the 200-day SMA now acting as a support level, DOT bounced back during trading hours. At present, DOT has risen by 4.48% and is being exchanged at $7.46, giving buyers the upper hand in the market.

Polkadot (DOT): What The Indicators Are Saying

Let’s examine the factors influencing DOT‘s potential price movement based on the chart provided. The price of DOT exhibits robust support around $6.40, and an additional layer of backing exists at $7 due to the 200-day Simple Moving Average (SMA). As we advance, the primary resistance lies at the $7.70 mark, which is where the 20-day SMA is situated. Should DOT manage to surpass this level, a significant price increase could follow, potentially reaching $8.50 or even $9, with the 50-day SMA serving as potential resistance at these price points.

If sellers regain dominance in the market, DOT‘s price might fall back to $7. Should this level of support fail, DOT may slide down to $6.40. According to the MACD, the trend is currently bullish, implying further growth for DOT’s price. However, the Parabolic SAR remains bearish but could switch to bullish if buyers maintain their momentum.

Significant Developments For Polkadot 

Recently, Polkadot has been bustling with activity as its blockchain network reached important achievements. Over the weekend, Polkadot’s founder Gavin Wood unveiled a Gray Paper proposing the upcoming Join Accumulate Machine (JAM) upgrade during his speech at the Token2049 conference in Dubai. Wood characterized JAM as an innovative protocol that combines features from both Polkadot and Ethereum. This announcement follows ten years after the publication of the Yellow Paper, marking a major progression that will eventually lead to the replacement of Polkadot’s Relay Chain with a more flexible and streamlined design.

This afternoon, @gavofyork introduced the JAM Gray Paper. JAM represents a new approach that integrates features from both Polkadot and Ethereum. It’s an intriguing possibility for replacing the current Relay Chain with a more flexible, streamlined design.

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2024-04-22 12:02