POLKADOT Price Analysis 10-3: DOT Struggling To Stay Above $4

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As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I find myself once again at the crossroads with Polkadot (DOT). The recent bearish sentiment has taken its toll on DOT, erasing all gains made since mid-September.

Over the weekend, Polkadot (DOT) has seen a downturn, erasing all the progress it had made since recovering on September 18.

As a researcher, I observed a significant drop in the value of DOT on both Monday and Tuesday, causing it to fall beneath crucial support thresholds as well as dipping below both the 20 and 50-day Simple Moving Averages (SMAs).

Polkadot (DOT) Struggles As Bearish Sentiment Takes Hold

On Friday, Polkadot (DOT) peaked at $4.97, aiming to surpass $5. But the mood shifted over the weekend, causing a downward trend. The strong resistance at $5 caused DOT to slide into negative territory on Saturday, losing 2.04% or $0.11 to close at $4.79. Continuing its downturn on Sunday, DOT further dropped to $4.77 after minimal decline. As the new week started, selling pressure surged, leading to a significant drop of nearly 7%. This caused DOT to fall below $4.50, settling at $4.44.

Due to increasing conflicts in the Middle East causing unfavorable market conditions, DOT experienced a significant decrease on Tuesday, falling by 6.31% to $4.16. This decline also caused DOT to dip beneath its 20 and 50-day moving averages, reaching a low of $4.04. The following day showed high volatility as buyers tried to rebound while sellers aimed to drive DOT below the $4 support level. However, in the end, DOT saw a drop of 1.44% and closed at $4.10. At present, DOT continues to trend downward, with a decrease of 1.22% to $4.05.

What Next For Polkadot (DOT)

Moving forward for DOT, there’s significant support at around $4, and investors are anticipated to vigorously protect this level to prevent any further drop. In case this level is breached, the long-term support at $3.62 will come into play. Since early August, DOT has been fluctuating between $4 and $5, leading market analysts to hope for a rebound that could lead it back to $5. However, the direction towards $5 depends on ongoing geopolitical events and how the market responds to them. If the cryptocurrency market experiences a recovery within the next few days, DOT is likely to follow suit. Whether it can surpass $5 is yet to be determined; such an action would necessitate a catalyst to initiate a bull run.

For the moment, buyers must ensure DOT remains above the $4 support level.

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2024-10-03 15:15