POLKADOT Price Analysis 11-19: Can DOT Continue Its Rally and Go Beyond $6?

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As a seasoned researcher with a knack for deciphering market trends and a soft spot for altcoins like Polkadot (DOT), I must admit that watching DOT’s rollercoaster ride has been quite the thrill! After plunging to record lows, it’s heartening to see DOT make an impressive recovery, reclaiming key resistance levels and surging past moving averages.

After experiencing a significant drop the preceding week, dipping down to $4.69, Polkadot (DOT) has shown remarkable resilience in its bounce back.

In simpler terms, DOT has increased by nearly 7% over the last week, bouncing back after encountering support, and is currently aiming to surpass the significant barrier of $6.

Polkadot (DOT) Makes Impressive Recovery From Record Lows

To start with, Polkadot (DOT) initially traded at a low of around $3.65 at the beginning of this month. However, the digital currency has made an impressive comeback, surpassing crucial moving averages and reclaiming significant resistance levels, reaching beyond $5 and $6. For a long time, DOT exhibited bearish tendencies, but the daily chart now suggests that the market sentiment has improved as bulls have been in charge during the last few weeks, pushing the price upward.

Over the past week, DOT has started rebounding following a drop below $5, now attempting to break through the previous resistance at approximately $6, a point where it had earlier been unsuccessful.

A Positive Start Turns Negative

After the Polkadot (DOT) elections, DOT started off the week in a positive trend, climbing nearly 9% to surpass the 200-day Simple Moving Average (SMA) and reach $5.71. However, buyers failed to maintain this momentum, allowing sellers to take over and cause DOT to decline by 7.01%, dropping it back below the 200-day SMA to $5.31. The bearish sentiment continued on Wednesday as DOT fell another 4.33% to $5.08. On Thursday, DOT dipped below the $5 mark, recording a nearly 6% drop and ending at $4.78.

Recovery And Key Levels

On Friday, Polkadot (DOT) experienced a robust rebound, climbing nearly 8%, returning to the $5 mark and ending at $5.16, despite heavy selling forces. The next day, DOT gained an impressive 12.02%, soaring past its 200-day Simple Moving Average (SMA) and $5.50 to reach $5.78. On Sunday, DOT spiked to a high of $6.14 as buyers capitalized on the bullish trend and aimed to push the price beyond $6. However, with sellers actively present above $6, the bullish momentum subsided, causing a steep decline of over 6%, settling DOT at $5.42.

On Monday, DOT bounced back due to the 200-day Simple Moving Average (SMA) serving as a robust support level. This boost propelled DOT by 10.70%, placing it at $6. However, despite the positive vibes, it failed to surpass this figure. Currently, DOT is experiencing a drop of 4% as it battles to surmount $6, encountering significant resistance from sellers at that level. The Moving Average Convergence Divergence (MACD) suggests a bullish trend for DOT, with buyers holding onto their positions. But the Relative Strength Index (RSI) is approaching the overbought territory, hinting at a potential brief dip in the near future.

In simpler terms, if DOT stays at or above $5.40, it may potentially rise to around $6 and possibly $6.50. However, if the price drops below $5.40, it might fall to either $5 or even $4.50.

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2024-11-19 16:05