As a seasoned analyst with over two decades of experience in the volatile world of cryptocurrencies, I’ve seen markets rise and fall like the tides, but never without leaving behind valuable lessons. This week has been particularly challenging for Polkadot (DOT), a coin I’ve closely followed since its inception due to its unique potential.
Over the last 24 hours, Polkadot (DOT) has seen a drop of nearly 8%, primarily due to heightened conflicts in the Middle East causing a broader collapse in the cryptocurrency market. As uncertainty grows, many investors are shifting towards secure investments such as safe-haven assets.
DOT has dropped below multiple significant support points and is now being traded at approximately $4.16, as market sellers continue to hold dominance.
Polkadot (DOT) Facing A Difficult Week
This week for Polkadot (DOT) has been more like a violent storm, erasing the gains it had made the week before in just three days. DOT had shown remarkable resilience since it dipped to a low of $3.98 on September 18. By the end of the last week, it had climbed as high as $4.96 and was poised to break through $5, with buyers eagerly pushing it upwards. However, $5 proved an insurmountable barrier for DOT, and it failed to surpass this level. Instead, sellers took control over the weekend, causing DOT to decline by 2.04% on Saturday and an additional 0.42% on Sunday, leaving it closing the weekend on a downward trend at $4.77.
On Monday, the selling force grew stronger for DOT as it plummeted nearly 7%, falling beneath a crucial support of $4.50 and its 20-day Simple Moving Average to settle at $4.44. Investors made an attempt to regain control on Tuesday, pushing DOT back above $4.50, peaking at $4.57. This upward trend was short-lived due to unsettling geopolitical developments that caused market turbulence. Consequently, DOT took a turn for the worse, losing 6.31% and falling below another significant support level at $4.30 to reach $4.16.
Polkadot (DOT)’s Current Position
At the moment, Polkadot (DOT) is experiencing a decrease, with its price currently standing at $4.10, a drop of 1.44%. Attempts by buyers to push the price above $4.20 have been unsuccessful due to increasing selling pressure. The key support for DOT lies at $4, and if sellers maintain control, it may slide down to this point, potentially attracting buyers. Buyers are determined to prevent a fall below this level. If this level is breached, attention will shift to DOT’s long-term support at $4.62.
Is This A Buying Opportunity?
Over the last 24 hours, DOT has dropped approximately 8%, indicating a persistent negative outlook. Analysts predict that this decline represents the final stage of accumulation for DOT, suggesting an imminent surge. They also posit that geopolitical events typically have minimal long-term influence on its price. Currently, DOT is poised for a breakout from a descending triangle pattern, potentially leading to a substantial price increase in the immediate future.
Let’s delve into the world of Polkadot now, where I’ll provide some insights on promising assets for the upcoming weeks. The DOT token seems to be nearing the end of its annual accumulation period and appears ready to burst free from a long-awaited descending triangle formation. In recent times, there have been substantial shifts among major cryptocurrencies. Soon, we can expect the DOT token to surge.
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2024-10-02 17:09