The price of Polkadot (DOT) didn’t manage to surpass its 20-day simple moving average (SMA), acting as a significant barrier, causing the token’s value to fall back beneath $7.
In recent trading days, DOT showed strong signs of rising, with investors anticipating it to surpass the moving average of the previous two days and reach beyond $8. Yet, during the last two sessions, sellers managed to take control and drove the price lower.
Polkadot (DOT) Back Below $7
For the past week, DOT‘s price has been bouncing between the $7 mark, provided by the 200-day Simple Moving Average (SMA), and the 20-day SMA serving as a significant resistance level around $7.20. An additional support level exists near $6.40. Throughout last week, DOT remained within this range with the 200-day SMA acting as resistance. However, on Saturday, DOT broke above the 200-day SMA, leading to a 8.38% surge and settling at $7.24.
On Sunday, DOT experienced a slight decrease, but its current position above the 200-day moving average (SMA) might keep its price around $7, potentially reaching $7.14. However, as DOT hovers between the 200-day SMA and the shorter 20-day SMA, it encounters several significant resistance levels. These resistance levels raise concerns about the longevity of any bullish momentum observed in the cryptocurrency. Throughout this week, the price of DOT has been bouncing between these two moving averages.
On Monday, DOT experienced a 4.62% price surge, reaching $7.47. However, despite a strong upward trend during the weekend and on Monday, the cryptocurrency failed to surpass its 20-day moving average (SMA). As a result, sellers took control, causing DOT’s price to plummet by nearly 3% to $7.25. The following day, Wednesday, brought significant volatility to DOT as it initially spiked due to buying pressure, reaching a high of $7.49. However, sellers soon regained control, pushing the price back below the 20-day SMA and causing a 4.55% decline. Consequently, DOT closed at $6.92, falling below the $7 mark.
Current Scenario
Current situation for Polkadot (DOT): The price hovers around the $7 mark, which is both a support level and coincides with the 200-day Simple Moving Average (SMA), as shown in the provided chart. At present, DOT has gained 0.72%. Notably, buyers are stepping in at this price point. The significance of these levels – the 200-day SMA and the 20-day SMA – cannot be overstated for DOT’s short-term performance.
At present, the power to influence the market lies with neither buyers nor sellers. Should bearish trends continue, DOT‘s value may dip below the $7 threshold and even touch the 2000-day moving average. In this scenario, the price could slide down to a secondary support level of $6.40, as indicated in the chart below. However, if buyers manage to regain control, they might push DOT up against its resistance at the 20-day moving average once more. For DOT to experience substantial upward momentum, it must first surpass its 20-day moving average. If successful, we could observe a rise towards the $8 mark.
Based on the signals from the technical indicators, DOT‘s MACD remains bullish, suggesting that the cryptocurrency may rebound from its present position. However, whether this recovery will be sufficient for DOT to challenge its 20-day Simple Moving Average (SMA) again is uncertain. At the moment, the RSI for DOT is near the neutral zone’s lower boundary. The RSI being close to the oversold area implies that there is a possibility of buyers stepping in at the current price level.
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2024-04-25 10:01