As a researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of volatility. And Polkadot (DOT) is certainly giving me a run for my money this week! The past few days have been a rollercoaster ride for DOT investors, with the token struggling to break above its 20 and 50-day Simple Moving Averages (SMAs).
This week, Polkadot (DOT) is experiencing significant fluctuations due to its efforts to gather pace and surpass its short-term moving averages, specifically the 20-day and 50-day simple moving averages.
Last week saw a substantial decrease for DOT following its inability to maintain positions above $4.50. On Friday, persistent selling pressure brought the price down to a daily minimum of $3.83.
Polkadot (DOT) Registers Sharp Fall
Last week, Polkadot (DOT) found itself in the red territory, unable to maintain its position above $4.50 despite briefly reaching $4.57 on Sunday. The buying force weakened under mounting selling pressure, leading to a 4.38% drop on Monday, bringing DOT down to $4.37. A recovery attempt was made on Tuesday, but the momentum waned, causing sellers to further reduce the price by 1.14% to $4.32. The bearish trend grew stronger on Wednesday as DOT dipped below its 20 and 50-day moving averages to a low of $4.10. However, it managed to rebound from this level and closed at $4.21, marking a 2.55% decline.
As a researcher, I observed an escalation in market volatility on Thursday. I noticed buyers’ efforts to surpass the 20-day Simple Moving Average (SMA), but they fell short. Conversely, sellers made attempts to drive DOT downward towards $4.20, only to see it close at $4.21 instead.
Polkadot (DOT) Finds Support Yet Again
Looking back, it’s clear that Polkadot (DOT) has robust foundations at roughly $4 and $3.62. Unsurprisingly, when DOT dipped below the $4 mark, market buyers stepped in, bolstering the price. Consequently, over the weekend, DOT rebounded by 1% on Saturday, regaining its position above $4 at $4.03. On Sunday, bullish optimism grew as DOT experienced a 2.48% surge to reach $4.13, with investors eagerly anticipating another climb towards $4.50.
A Significant Jump In Volatility
On Monday, despite attempts to sustain a rise, DOT experienced significant volatility. This saw it reach an intraday peak of $4.22, only to dip down to $4, before settling at $4.13. The ongoing session continues to showcase this volatility as buyers strive but fail to surpass the 20 and 50-day Simple Moving Averages (SMAs). At present, DOT is hovering slightly up, trading near the $4.14 level.
Should purchasers resume their drive and surpass the moving averages, there’s a possibility that the price might head towards $4.50 once more. Conversely, if sellers assume control, we may witness DOT falling back to approximately $4, following which a potential rebound could occur.
Analysts Still Hopeful
The fact that DOT has bounced back after a significant decline implies it continues to have robust backing at $4 and $3.62. Although DOT is facing some price challenges, analysts are optimistic about an upcoming breakthrough which could propel its value beyond $5. The launch of Polkadot 2.0 and the introduction of the Join Accumulate Machine (JAM) protocol are notable achievements that enhance the scalability and interoperability within the Polkadot network.
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2024-10-29 16:09