As a seasoned researcher with years of experience navigating the cryptocurrency markets, I find myself both intrigued and concerned by Polkadot (DOT)’s current struggles. The sideways trading we’ve seen since last week is reminiscent of a pendulum stuck mid-swing, unable to gather enough momentum to continue its trajectory.
Currently, Polkadot‘s (DOT) crypto market performance is attempting a rebound following a recent dip. The digital currency has primarily been moving horizontally in its trades since midweek last week.
On September 27, DOT showed signs of turning pessimistic when it was unable to surpass the $5 mark, instead allowing sellers to take control and drive the price sharply lower.
Polkadot (DOT)’s Struggles Continue
Last Monday, Polkadot (DOT) saw a significant drop of nearly 7%, reaching $4.44 following a weekend fall into the red. A failed attempt at recovery on Tuesday allowed sellers to pull the price lower, causing DOT to fall below both its 20 and 50-day moving averages to $4.16 after a decrease of 6.31%. On Wednesday, DOT experienced high volatility as buyers tried to stage another recovery while sellers aimed to push it below $4, but ultimately sellers managed to drive the price down by 1.44% to $4.10.
On Thursday, DOT dropped slightly below the $4 mark but soon bounced back thanks to buyers’ efforts, pushing DOT up to $4.13. Continuing its upward trend on Friday, DOT saw a 1.45% increase, moving it to $4.19.
Stuck Sideways
Despite recovering from a low of $3.99, buyers could not build momentum and push DOT towards $4.50. Instead, DOT began trading sideways as it registered a drop of 1.19% on Saturday to drop to $4.14 and start the weekend on a bearish note. The price recovered on Sunday, rising by 1.21% and moving to $4.19. DOT attempted to push towards $4.50 on Monday but quickly lost momentum. As a result, sellers took over and pushed DOT down by 1.43% to $4.13. The current session sees DOT marginally down as buyers and sellers struggle to establish control.
Can Polkadot (DOT) Regain Momentum?
Polkadot (DOT) is currently unable to build any momentum that could initiate a significant price action. Thanks to strong support, DOT has remained above $4 as buyers enter the market at lower levels. However, buyers have been unable to push towards $4.50 after DOT’s latest downturn. Buyers must regain control of the current session and go above $4.50 for any chance of a move back to $5 to materialize. On the other hand, sellers will look to drive DOT to $4, a level that will attract buyers once again.
In spite of recent challenges with DOT‘s price, analysts continue to hold the belief that this altcoin is on the brink of a major surge. Technical signals suggest an imminent uptrend might be underway. Polkadot has observed a rise in new users and a 25% spike in active ones, while daily trading activity has also experienced a significant boost. Analysts predict that DOT is nearing the conclusion of its accumulation period and could soon experience an unprecedented breakout.
“With over 600 days below the key zone, Polkadot is gearing up for a major push.”
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2024-10-08 15:04