POLKADOT Price Analysis 10-5: DOT Inches Towards $4.50

As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I find myself closely watching Polkadot (DOT) as it inches towards $4.50. While DOT has shown promise in the past, its current trajectory is reminiscent of a rollercoaster ride – full of ups and downs.


On Friday, Polkadot (DOT) experienced a 1.45% rise, closing at $4.19. This move comes as an effort to bounce back from a Thursday low of $3.99.

For the majority of this week, DOT‘s trend has leaned towards bearishness, reversing the growth it achieved the preceding week where its value reached an all-time high of $4.96. Yet, breaking the $5 mark still seems challenging.

Polkadot (DOT) Inches Towards $4.50

Let’s review Polkadot (DOT)’s past week. Last Friday, DOT showed a bullish trend, peaking at $4.96. Yet, it couldn’t surpass the $5 mark, a level it had previously been pushed back from. Consequently, DOT slipped into the red over the weekend as buying momentum waned and selling pressure took hold, resulting in a 2.04% decline on Saturday and an additional 0.42% drop on Sunday, ending the weekend on a negative note. The selling pressure and bearish feelings grew stronger on Monday as the week started, causing DOT to plummet by nearly 7%, dipping below $4.50 to close at $4.44.

On Tuesday, with market sentiment turning bearish due to increasing conflicts in the Middle East, DOT experienced another decline following a failed attempt at recovery, decreasing by 6.31% and falling beneath both the 20 and 50-day moving averages to reach $4.16. The next day, Wednesday, DOT experienced significant fluctuations as buyers and sellers competed for control over its price, causing it to move up and down. Ultimately, sellers took charge, lowering DOT by 1.44% to $4.10.

Back Below $4.

On Thursday, Polkadot (DOT) dipped below $4, reaching a daily low of $3.99. Yet, this level appears to be strong support for DOT, causing it to bounce back with buyers taking charge, resulting in a 0.73% increase and pushing the price above $4 to rest at $4.13. The upward trend continued on Friday, with DOT gaining an additional 1.45%, moving up to $4.19. In the current trading session, DOT is experiencing minor growth as both buyers and sellers are competing for control.

DOT is alternating between the robust support at $4 and the challenging resistance at approximately $5, which it has previously been unable to penetrate. This week, sellers attempted to drive the price below $4 but were not successful. If $4 should be broken, however, DOT could retreat to its long-term support of $3.62. Conversely, buyers have found it difficult to push the price above $5, a level where there is strong seller activity.

A Move Above $5?

As a researcher examining the price movement of DOT, I believe it’s crucial for DOT to surpass the $4.50 mark first, which would also necessitate breaking through both the 20 and 50-day Simple Moving Averages (SMAs). If this milestone is achieved, a move towards $5 becomes plausible. However, whether DOT can indeed surpass $5 is yet to be determined. Overcoming the $5 barrier necessitates a catalyst that could spark a robust bull run.

Polkadot Introduces Decentralized Nodes Program

Polkadot has made a substantial move towards enhancing its decentralization by implementing the Decentralized Validator Node Program. This initiative aims to strengthen and diversify the Polkadot ecosystem, focusing on robust security, eco-friendly practices, and trustless operations. By broadening the scope of validators, this program fosters further decentralization within the network. The application for the Decentralized Validator Node Program is open and will remain active until October 31st, 2024.

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2024-10-05 18:49