As a seasoned researcher with years of experience in the cryptocurrency market under my belt, I find myself constantly intrigued by the rollercoaster ride that is Polkadot (DOT). Over the weekend, DOT registered an impressive recovery after hitting a low of $3.82 on Friday, but alas, the relief rally stalled during the ongoing session as it failed to move past the 20-day SMA.
Polkadot (DOT) registered an impressive recovery over the weekend after dropping to an intra-day low of $3.82 on Friday, bringing its multi-year support level into focus once again.
Despite attempting to advance during the current trading period, DOT‘s progress has halted because it couldn’t surpass its 20-day Simple Moving Average (SMA). This average now serves as a barrier to further growth, acting as a point of resistance.
Polkadot (DOT)’s Relief Rally Stalls
On August 24, Polkadot’s surge towards $5 was halted abruptly when buyers lost steam at $5.11. This shift in momentum allowed sellers to take over the market, causing DOT to drop. By August 26, DOT dipped below its 20-day Simple Moving Average (SMA) following a 5.39% decrease and reached a low of $4.25 on the 27th. However, buyers managed to prevent any further decline on the 29th, leading to a slight increase in DOT’s value on August 30. Yet, starting from September 1, the sellers regained the upper hand as DOT suffered a substantial decrease of 4.46%, dropping to $4.07.
Last week saw DOT moving in a descending pattern, and it fell below the significant $4 mark on Friday, reaching a low of $3.82. However, it managed a slight rebound afterwards, ending the day at $3.96 – representing a decrease of 1.49%.
Support Holds Firm
The price of Polkadot (DOT) has been steadfastly defended at two significant points, resulting in a rebound for the cryptocurrency. One key support point is the long-standing level of around $3.62, which was tested on August 5 and prompted a strong recovery that saw DOT rise to $4.88 by August 8. The second support, more immediate, is at roughly $4, which was tested twice last week. As DOT dropped below this point on Friday, buyers stepped in, causing an increase of 3.28% the next day and pushing DOT back above $4 to $4.09. On Sunday, DOT continued its positive trend, registering a further 1.96% increase, settling at $4.17.
This week started with DOT‘s buyers keeping up their pace, resulting in a 2.88% rise to $4.29. Initially, they tried to push past the 20-day Simple Moving Average (SMA) on Monday, but encountered resistance. As the 20-day SMA served as a dynamic obstacle, the buyers’ momentum waned, causing DOT to slide back into negative territory during the current trading session. At present, DOT is down by 1.40% and hovering around $4.23.
What Next For Polkadot (DOT)
In summary, the price of DOT is currently being supported by buyers around the $4 and $3.62 marks. If sellers maintain control, we might see DOT dip to $4 before bouncing back. However, if the $4 level is breached, the focus will shift to the $3.62 support. Conversely, if buyers manage to regain control, DOT could surpass its 20-day Simple Moving Average (SMA), potentially reaching $4.50. This would require demand for DOT not to diminish at higher price points. If DOT manages to close above $4.50, a return to $5 might become a possibility. At the moment, a bullish MACD indicates that the bulls have the upper hand.
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2024-09-10 16:03