As a seasoned researcher with over a decade of experience in the crypto markets, I have seen my fair share of bull runs and bearish trends. The current situation with Polkadot (DOT) is particularly intriguing.
Over the last 24 hours, Polkadot (DOT) has climbed by nearly 3%, marking a gradual but slow improvement that’s taken it to around $4.20.
Over the last fortnight, I’ve found myself grappling with a significant downturn in the price of DOT. Despite several attempts, its support at $4 has been consistently challenged, and it’s dipped as low as $3.95 during intraday trading.
Polkadot (DOT) Recap
The downward trend for Polkadot (DOT) commenced on September 27th, as it couldn’t break through the significant resistance level at $5. Once it was rejected from this point, DOT quickly lost all of its gains leading up to reaching $5 within a few days, plunging below both the 20-day and 50-day Simple Moving Averages following steep declines. By October 2nd, DOT was approaching the $4 support level and dipped below it on the following day, reaching a daily low of $3.99 before rebounding and climbing back above $4.
On Friday (October 4), DOT‘s recovery progressed, with a 1.45% rise that placed it at $4.19. Yet, as resistance strengthened near $4.20, DOT slid back into negative territory on Saturday, losing 1.19%, and settling at $4.14. However, buyers reclaimed control on Sunday, pushing the price upward, leading to a weekend close of 1.21% growth and a final settlement of $4.19 for DOT.
Unable To Move Past $4.20
Although Polkadot (DOT) had a promising close on Sunday, the beginning of the week saw a shift in market sentiment towards bearishness. Sellers managed to halt any significant advance beyond $4.20. On Monday, DOT reached a peak of $4.27 but soon lost momentum and slid 1.43%, ending the day at $4.13. The decline continued on Tuesday as DOT dropped by 0.73% to $4.10. Sellers intensified their pressure on Wednesday, pushing DOT below $4 to a daily low of $3.95. However, buyers stepped in and pushed the price back above $4, ending at $4.02 after a drop of 1.95%.
On Thursday, DOT dipped below $4 again, falling to $3.95, but quick buyers stepped in to push the price back above $4. This time, the buyers held onto control, resulting in a 1.49% increase for DOT, taking it up to $4.08. On Friday, the trend continued as DOT saw another 2.21% rise to $4.17. As of the current session, DOT is still on an upward trend, with a 0.72% increase and trading near the $4.20 mark.
Can Polkadot (DOT)’s Recovery Continue?
Market observers and stakeholders are pondering whether Polkadot (DOT) can maintain its recent recovery efforts. Previously, DOT displayed a similar recovery over the weekend but halted around the $4.20 mark before dropping back to $4. At present, DOT is lingering at the $4.20 price point, and it’s uncertain if it will surpass this level and climb towards $4.50. Before it can reach $4.50, though, it needs to break above its 20-day and 50-day Simple Moving Averages (SMA). If DOT rebounds from its robust support levels, it may potentially surpass the $4.50 mark and even challenge the critical $5 threshold.
Although there’s some doubt surrounding DOT, certain experts remain optimistic about this cryptocurrency. In fact, over the last month, DOT has seen more than half of its days with price increases, and its volatility is only slightly above 5%. One forecast suggests that by 2025, DOT could experience a substantial rise in value, potentially reaching $20. Given this outlook, those who purchased during the dip are hopeful for considerable returns on their investment within the next few months.
Currently, Mythos is transferring its Mythical Market and NFT collections to the Polkadot network, leading to an increase in network activity. This transition involves more than 5 million wallets being moved, which investors and DOT holders anticipate could stimulate a resurgence.
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2024-10-12 20:02