Polkadot Price Analysis: $DOT Struggles Against Bearish Trends

As a seasoned crypto investor with a knack for navigating market turbulence, I’ve seen my fair share of ups and downs. The recent bearish pressure on Polkadot ($DOT) has once again reminded me of the unpredictable nature of this exciting yet rollercoaster ride we call the crypto market.


After reaching the $5 mark last week, Polkadot‘s price ($DOT) has once more encountered considerable downward pressure, halting its previous upward trend.

Currently, Polkadot’s ($DOT) performance is experiencing some turbulence following a dip in its progress from last week. Regrettably, $DOT was unable to recapture the $5 mark after peaking at $4.98 on August 16 and is now being traded at $4.18.

$DOT Falls Short

Since sliding into negative territory on August 25th, Polkadot ($DOT) has been battling against bearish forces. Last week, buyers were optimistic as $DOT tried to retake the $5 mark. Despite a robust uptrend that peaked at $4.98, buyers failed to surpass the critical threshold, and ultimately, $DOT ended the week in the red. On Sunday, sellers reclaimed control, leading to a 3.21% drop.

As a crypto investor, I observed the persistent dip in the price of $DOT on Monday, with a 5.39% drop that dragged it beneath the 20-day SMA, concluding at $4.56. The bearish trend persisted on Tuesday as sellers aimed to drive $DOT below its $4.20 support, but resilient buyers stepped in to prevent further decline, ending the session at $4.38, marking a 4% drop. The negative momentum continued on Wednesday, resulting in a 2.74% decrease. On Thursday, increased demand for $DOT at lower levels enabled buyers to jump in, pushing $DOT to a daily high of $4.40. During the session, as buyers took control and drove the price up, demand for $DOT at higher levels slowed, leading to a slight decline that ended the day at $4.25. Remarkably, despite the Thursday drop, the buyers successfully maintained $DOT above its $4.20 support.

On Friday, $DOT faced testing its support as selling pressure dropped the price to a daily low of $4.10. However, robust demand for $DOT at lower prices attracted buyers, causing a rise to $4.29, marking a 0.94% increase for the day. A slight dip on Saturday led to $DOT concluding the session at $4.25.

Where Does $DOT Go Now? 

Presently, there’s a lot of ambiguity in the market’s overall attitude towards $DOT. If a positive outlook prevails and buyers manage to hold $DOT above its current support level and drive it up to around $4.50, the price trend might continue towards $5. However, a shift in sentiment could lead to the opposite scenario. Regrettably, it seems sellers are currently dominating the market, pushing $DOT below its support level. At present, $DOT is trading at approximately $4.18, representing a 2.50% drop. If sellers continue to control the situation, $DOT could slide down to $4.

As we move ahead, there’s a high degree of uncertainty. Lately, we’ve observed an uptick in demand for $DOT at this current lower price range, potentially encouraging buyers to act and bring about some relief. Yet, if the $4 mark is surpassed, it could instigate a downward spiral that might push $DOT towards its long-term support level of around $3.60.

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2024-09-01 18:12