As a seasoned crypto investor with a few battle scars from the volatile cryptocurrency market, I find myself cautiously optimistic about Polkadot (DOT) at the moment. After a rather challenging week, DOT has shown resilience by bouncing back from its day low and retesting the crucial support level of $4.
Currently, Polkadot (DOT) has increased by more than 1% in the last 24 hours, bouncing back after reaching a daily low of $3.99 on Thursday. In this ongoing session, DOT is experiencing an uptick of approximately 0.50%, with its trading value hovering around the $4.15 mark.
Nearly every altcoin, including DOT, experienced losses of their earlier profits during a particularly bearish market week due to heightened tension in the Middle East, causing widespread anxiety among investors.
Polkadot (DOT) Rebounds From Support Level
This week, Polkadot (DOT) has mainly moved downwards after it failed to break past $5 last Friday. A significant amount of selling caused the coin to trend bearish over the weekend, decreasing by 2.04% on Saturday and 0.42% on Sunday, closing out the weekend with a bearish sentiment. The start of this week saw a surge in selling pressure, causing DOT to drop nearly 7% to $4.44. Buyers made an attempt at recovery on Tuesday as DOT peaked at $4.57 for the day. However, as the market turned bearish again, DOT’s recovery was stopped, resulting in a 6.31% decline that pushed it below both its 20 and 50-day moving averages to $4.16.
On Wednesday, there was increased market turbulence as sellers tried to push DOT down towards $4, but buyers aimed to rebound and move it back above $4.50. In the end, the sellers took control, causing DOT to drop by 1.44% to $4.10. On Thursday, DOT dipped below $4, reaching a daily low of $3.99. However, $4 is a significant support level for DOT, so it started to rebound as buyers counteracted the selling pressure. The price eventually rose by 0.73%, pushing up to $4.13. Currently, DOT is slightly higher, trading near the $4.15 mark.
Can Polkadot (DOT) Push To $5?
The current recovery of DOT hinges on the state of the broader market. The ongoing turmoil in the Middle East seems to negatively affect both traditional and cryptocurrency markets, raising questions about the sustainability of this recovery. There’s a possibility that buying interest might dwindle, causing DOT to dip towards $4. However, a dip below $4 is not anticipated because of DOT’s robust support at this level. If the price should drop below $4, it will likely find some stability at $3.62.
If DOT is to regain its upward momentum and potentially reach $5 again, it needs to surpass the resistance level of $4.50 initially.
Polkadot’s On-Chain Metrics
As a crypto investor, I’ve noticed that the number of new Polkadot users has remained fairly consistent over the past year. Yet, the active user count has seen a notable surge of 25%. Moreover, DOT‘s daily trading volume has experienced a substantial rise, suggesting that the network is handling sizeable transactions. Given these trends, analysts seem to believe that DOT may be nearing the end of its accumulation phase and could potentially break out imminently. One analyst even pointed out this possibility, stating that DOT might be on the verge of a significant leap forward.
Let’s delve into the world of Polkadot! I’ll be providing some technical analysis, focusing on assets with tremendous growth potential in the upcoming weeks. The price of DOT is nearing the end of its annual accumulation phase and seems ready to burst out of a long-awaited descending triangle pattern. In the recent past, we’ve seen substantial fluctuations in large-cap cryptocurrencies. It won’t be long before DOT experiences a significant surge.
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2024-10-04 19:12