POLKADOT Price Analysis 11-7: Can DOT Stay Above $4 After Strong Rally?

As a seasoned researcher with over two decades of experience in the cryptocurrency market, I have witnessed countless ups and downs, bull runs, and bear markets. The rollercoaster ride that Polkadot (DOT) has been on lately is no exception.


After the elections, Polkadot (DOT) regained a value of around $4, marking an impressive comeback in the cryptocurrency market. This surge came about following the announcement that Donald Trump had won as the Republican candidate, causing a general rally in the crypto markets.

Over the past few weeks, I’ve noticed a downturn for DOT, with its value dipping below the $4 mark last week. This significant decrease was driven primarily by bearish sentiments that have been dragging the price lower.

Polkadot (DOT) Registers Sharp Fall

Over the past few weeks, Polkadot (DOT) has had difficulty surpassing its 20-day Simple Moving Average (SMA). A buying effort was made last week to break through this level, but it lost steam, allowing sellers to take over. This led to a significant decline of nearly 6% for DOT on Thursday, dropping below $4 to an intraday low of $3.89 before closing at $3.95. The downtrend continued on Friday as DOT dropped to $3.91 after falling about 1%. Sellers remained in control on Saturday as DOT experienced a slight drop and closed at $3.90. The bearish feeling grew stronger on Sunday as DOT plunged to an intraday low of $3.65, bringing its long-term support level of $3.62 into play.

Although faced with significant selling force, DOT managed to rebound and close at $3.78 following a nearly 4% decrease. On the other hand, sellers maintained dominance on Monday, causing DOT to dip to $3.75, marking an 9.79% fall.

A Brief Recovery

Despite a significant drop in DOT’s value, it bounced back strongly on Tuesday as market sentiment turned optimistic ahead of elections. This surge took DOT to an intraday peak of $3.92 before a slight dip, ending the day at $3.86. The bullish trend continued on Wednesday post-election results, pushing DOT up by 6.48% and over $4 to $4.11, just under its 20-day moving average. However, after reaching an intraday high of $4.20 during the current trading session, DOT has dipped slightly and is now down nearly 1%, currently trading at $4.07.

Can Polkadot (DOT) Slip Back Below $4?

With DOT’s progression appearing to slow down, investors ponder whether it might dip beneath the $4 mark once more. In an attempt to maintain DOT above the $4 threshold and gather momentum to re-establish key levels forfeited during the past week, purchasers will endeavor to exert pressure. For a sustained recovery to take place, buyers need to surpass both the 20-day and 50-day Simple Moving Averages (SMAs). Breaking through these thresholds could propel DOT towards $4.50. Nevertheless, if sellers maintain their grip, DOT could plummet beneath the $4 mark and potentially reach as low as $3.62 before a rebound occurs.

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2024-11-07 19:54