As a seasoned analyst with years of experience navigating the tumultuous seas of the crypto market, I have seen my fair share of bearish trends and false dawns. The latest struggles of Polkadot (DOT) are no exception. The past week has been a rollercoaster ride for DOT investors, with the asset failing to maintain momentum above key levels and being dragged down by intense selling pressure.
During the recent market slump, Polkadot (DOT) has faced challenges, as its price shifted towards a downward trend following another unsuccessful effort to surpass the $5 mark.
Over the last seven days, the Digital Oracle Token (DOT) has found it challenging to surpass $4.20 due to heavy selling and a rising pessimistic outlook, which has negatively impacted its value.
Polkadot (DOT) Endures Bearish Week
On Thursday, Polkadot (DOT) rebounded despite hitting a daily low of $3.99, due to buyers stepping in for a recovery. This allowed DOT to regain the $4 mark but only saw a minor growth of 0.73%, ending at $4.13. This suggested that the bullish energy was minimal at best. The trend continued on Friday with a 1.45% increase, taking DOT to $4.19. However, the weekend started off negatively as DOT dipped by 1.19% to $4.14 before regaining and rising 1.21% on Sunday, reaching $4.19 once more. In simpler terms, despite a dip in price, DOT managed to bounce back over the weekend with some fluctuations.
This week’s opening found DOT making an effort to reach around $4.50, but it managed to climb only as high as $4.27 before sellers emerged and forced the price back down. As a result, DOT fell by 1.43% to close at $4.13. Further declines were seen in DOT on Tuesday, following significant market fluctuations, with a drop of 0.73%, leaving it at $4.10.
Another False Dawn?
On Wednesday, the pessimistic outlook grew stronger when DOT dipped below its significant support of $4, reaching a daily low of $3.95. However, buyers managed to drive DOT back above $4, ending the day at $4.02 following a 1.8% decline. The next day, sellers again forced DOT down beneath $4, but the resilient support at this level allowed buyers to counteract the selling pressure. Consequently, DOT rebounded by 1.49%, climbing to $4.08. In the current trading session, buyers are trying to push DOT towards $4.20, with a near 1% increase already observed.
Can DOT maintain its current upward trend, or will it face further obstacles? So far, DOT has failed to surpass the $5 mark and has found resistance at $4.50 and more recently at $4.20. This week, it even dipped below these levels temporarily. As a consequence, DOT is having trouble building up speed and overcoming significant resistance points. To establish any bullish trend, investors need to keep DOT above the $4 mark; otherwise, a fall below this level could lead to further losses as DOT might slide down to its long-term support of $3.62.
As a researcher, I’ve observed that for the DOT price to surge past the $4.50 level, initial efforts must be made to surpass the hurdles of $4.20 and both the 20-day Simple Moving Average (SMA) and 50-day SMA. This is no simple feat. Overcoming these barriers might pave the way for DOT to challenge the $5 mark once more.
Can Mythos Spark A Revival?
In a recent update, Mythos has announced that it is transferring its Mythical Market and NFT collections to the Polkadot network. By doing so, they aim to use Polkadot’s EVM module for EVM address compatibility, which will provide a seamless experience for users. This transition also opens up the opportunity for developers to work with the Substrate framework based on WebAssembly. The goal is to boost the trading of secondary assets within the Polkadot network. Moreover, the decentralized structure of Polkadot ensures a high level of security for all transactions taking place on the Mythos parachain.
Due to more than 5 million wallets moving to Polkadot, the platform has witnessed an increase in transactions, potentially boosting the value of its native token, DOT.
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2024-10-11 16:05