Polkadot Price Analysis: DOT Struggling To Stay Above $4

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As a seasoned researcher with years of experience navigating the volatile cryptocurrency market, I find myself standing at the precipice, gazing upon the current state of Polkadot (DOT). This coin has been a rollercoaster ride for many, including myself, and its latest tumble back into the red on Tuesday is just another twist in its intriguing narrative.

Currently, Polkadot (DOT) is having a tough time holding above the $4 mark, as it dipped back into negative territory on Tuesday. The momentum of buyers seemed to wane as the price neared the $4.50 level

Initially, DOT experienced an upward trend that peaked at $5.11 in August. However, it has since started to decline due to increased selling pressure, causing the price to dip below its 20-day Simple Moving Average (SMA). Despite the efforts of buyers, they’ve been unable to establish a strong position because of the growing pessimism surrounding the asset

Polkadot (DOT) Struggling Once Again

Since reaching a peak of $5.11 on August 24, Polkadot (DOT) has predominantly trended downwards. Sellers dragged it down from this high, with DOT dipping below its 20-day Simple Moving Average (SMA) and the $4.50 price mark by the end of August, closing at $4.38 on August 27. By August 31, DOT had further dropped to $4.26, erasing all gains made during its climb to $5.11. The start of September saw DOT continuing to decline, dropping by 4.46% to $4.07, just above the crucial $4 support level

On Monday, a surge in buyer interest at lower prices caused DOT to rise by 3.44%, peaking at $4.21. However, this upward trend faltered when buyers failed to reach the $4.30 mark, and sellers took over on Tuesday, pushing DOT down to $4.07, a decrease of 3.33%. Currently, DOT is battling to stay above $4, having dropped 0.74%, with prices falling as low as $3.88 before buyers intervened, raising it back up to $4.10. Yet, sellers have resumed control, causing DOT’s trading price to fall to $4.04

A Crucial Moment For DOT

Currently, Polkadot (DOT) finds itself at a pivotal position, and its future price movements could be substantial. So far, buyers have struggled to gather steam and counteract the relentless selling force, resulting in a descending trend for DOT. Interestingly, as the graph indicates, DOT has two critical resistance points it needs to safeguard. The first, currently under pressure, is the $4 support level – a barrier that has held up against previous selling pressure, with DOT bouncing back successfully each time

If the current level is surpassed, it suggests an excessively bearish attitude towards DOT and draws attention to its significant support level at $3.62. Despite strong interest in DOT at lower prices, the waning demand at higher levels makes a quick return to $5 improbable, for now. For buyers, maintaining DOT above $4 and reclaiming the $4.50 level could signal a shift in sentiment. At present, the MACD chart shows bearish trends, while the RSI is significantly below 50, suggesting a predominantly bearish outlook

New Partnerships

Enthusiasts and market observers anticipate that Polkadot’s recent partnership with Inter Miami may serve as a catalyst, potentially increasing the value of DOT. This alliance involves the display of the Polkadot logo on Inter Miami’s training uniforms, which could provide the protocol with extensive visibility among football fans worldwide

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2024-09-04 19:14