As a seasoned researcher with over two decades of experience under my belt, I’ve seen bull markets turn bearish and bears become bullish again more times than I can count. This week, Polkadot (DOT) seems to be following that very pattern.
This week, Polkadot (DOT) has been experiencing a downtrend, losing more than 3% in just the last 24 hours. The persistent selling activity is keeping the price under pressure.
As a researcher, I noted that DOT hit a daily high of $4.61 on Monday. However, its subsequent decline suggests a dwindling investor interest, even though this altcoin experienced a substantial surge only last week.
Polkadot (DOT) Close To Giving Up Previous Week’s Gains
Over the last week, Polkadot (DOT) experienced a notable surge towards its conclusion, despite experiencing a substantial decline on Thursday that dropped its price below both the 20-day and 50-day Simple Moving Averages to $4.19, following a drop of approximately 3%. However, DOT made a robust comeback on Friday, surpassing the 20-day and 50-day SMAs to reach $4.30 after an increase of 2.63%. This bullish trend continued over the weekend, with DOT rising by 3.26% on Saturday and reaching $4.44. On Sunday, sellers tried to pull DOT back towards the 50-day SMA, causing it to dip to a daily low of $4.36 before recovering. As buyers overpowered sellers at lower levels, DOT almost reached 3% above $4.50 – a significant level of resistance – and settled at $4.57.
Yesterday, I witnessed my Polkadot (DOT) investments struggling to break through the resistance at $4.60 as the buying pressure seemed to wane. Consequently, on Monday, DOT plunged into the negative territory, experiencing a substantial decline of 4.38%, dropping back below $4.50 and settling at $4.37. On Tuesday, I saw buyers trying to regain control as DOT climbed up to a daily high of $4.43, but sellers quickly took over, causing a further dip of 1.14% that left my DOT holdings at $4.32, hovering just above the 50-day Simple Moving Average (SMA).
In this ongoing trading session, DOT has fallen below its 20-day and 50-day Simple Moving Averages (SMAs), with sellers pushing the price downwards. At present, DOT is declining by more than 2%, hovering around $4.23. If sellers maintain their control, there’s a possibility that DOT could slide to $4, potentially enticing buyers to enter the market. This might then lead to an eventual recovery for DOT.
Could Polkadot (DOT) Slip Below $4?
This week, Polkadot (DOT) has primarily moved downwards, with its price decreasing nearly 4% over the past month. The trend of DOT’s price chart hints at a possible return to consolidation. Interestingly, there’s been a significant increase in trading volume for DOT by approximately 65% within the last day, which may indicate investors are taking profits. If the negative sentiment persists, DOT might drop below $4. In this case, we could witness the price falling towards its long-term support at $3.62. Yet, some analysts remain optimistic about DOT, pointing out that it’s consolidating between $4 and $5, suggesting a potential breakout is imminent.
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2024-10-23 15:10