Polkadot Price Analysis: DOT Battles To Stay Above $7

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As a seasoned crypto investor with a keen interest in Polkadot (DOT), I’ve been closely monitoring its price movements over the past few weeks. And it’s safe to say that DOT’s recent performance has been a rollercoaster ride.

Polkadot‘s price hovers around the $7 mark following a seller-driven weekend, dipping as low as $6.93 on Sunday despite prior weekly growth.

As a researcher analyzing the cryptocurrency market trends, I observed an impressive 6.58% growth in Polkadot (DOT) within the last week.

Polkadot (DOT) Drops Below $7 After Strong Week 

Following a robust week, Polkadot (DOT) experienced a setback over the weekend, dipping back under the pivotal $7 threshold. The downturn began on Friday when DOT hit a high of $6.82 and plummeted to a low of $6.43 before closing at $6.67. The selling pressure intensified on Tuesday, causing the price to tumble by 2.83% to $6.48. Nevertheless, DOT encountered solid support at the $6.40 level, and the subsequent day witnessed a remarkable surge of 7.44%, propelling the token above its 20-day Simple Moving Average (SMA) to reach $6.96. However, it failed to breach the $7 mark.

On Thursday, DOT surpassed $7 in another turbulent trading day, only to be pulled back to $6.82 due to selling activity. The price eventually closed at $7.03. In contrast, Friday brought buying strength, leading to a 2.42% rise and a closing price of $7.20 for DOT. However, bears managed to disrupt the bullish trend over the weekend, resulting in minor losses on Saturday. Selling pressure intensified on Sunday, causing DOT to fall below its 20-day moving average to $6.93. Contrary to anticipations that the 20-day moving average would serve as a floor for DOT, sellers successfully broke through this barrier.

In the present market scenario, DOT is trading at $7, and investors are attempting to regain dominance and drive DOT’s price back up above this level.

Is Polkadot (DOT) Following A Similar Pattern?

From my analysis of the DOT price chart, I’ve noticed that this cryptocurrency exhibits a robust support level which it has successfully defended in various instances. The price bounces back strongly from this level after every dip. However, the past month has witnessed DOT trading within a narrow range between $6.40 and $7.50. A recent price rejection and subsequent fall over the weekend might lead to another visit to the support level before making a swift comeback – a pattern that has emerged three times in the past.

 

As an analyst, I’ve observed that for DOT to make a significant price shift and depart from its current trend, it needs to surmount the $7.50 resistance level first. If this milestone is achieved, we might anticipate further progression towards $8 and possibly even $8.50. Nonetheless, it’s essential to consider the implications of the bearish crossover between DOT’s 200-day Simple Moving Average (SMA) and 50-day SMA. On a positive note, the Moving Average Convergence Divergence (MACD) still exhibits bullish tendencies, reflecting persistent buying pressure in the market.

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2024-05-20 11:29