As a seasoned analyst with over a decade of experience in the crypto market, I’ve seen more than my fair share of bull and bear runs. Polkadot (DOT) has been a fascinating project to watch as it’s demonstrated impressive growth and resilience. However, its current decline is concerning, to say the least.
In simpler terms, the value of Polkadot (DOT) kept falling, dipping below $4.10 when sellers took over from the buyers who had lost their momentum. If this negative trend persists, we might see Polkadot’s price drop even further to around $4 or lower.
In simpler terms, the price points of $4 and $3.62 are crucial for DOT. The buyers aim to maintain these levels to avoid any additional drop in price.
Polkadot (DOT)’s Decline Continues
On September 27th, Polkadot (DOT)’s strong rebound took a pause, as it struggled to maintain its momentum following a daily peak of $4.97. Consequently, DOT shifted toward a bearish trend and experienced a substantial decline last week, falling beneath the 20 and 50-day moving averages and the crucial $4.50 mark. By midweek, DOT plummeted to a low of $4 as sellers approached the $4 support level with intensity. On Thursday, DOT dipped slightly below $4, reaching a low of $3.99 before rebounding, gaining 0.73% and closing at $4.13. However, on Friday, DOT continued to recover, increasing by 1.45% and ending the day at $4.19.
Buyers Fail To Build Momentum
Although DOT has bounced off its support level, it hasn’t managed to advance towards $4.50 as anticipated and is instead stabilizing near $4.20. Following a 1.45% rise on Friday, DOT experienced a reversal on Saturday, shedding 1.19% to reach $4.14. However, it regained some ground on Sunday, climbing by 1.21% to hit $4.19. Yet, the current trading week started with sellers regaining control after an unsuccessful attempt by buyers to push DOT towards $4.50. The cryptocurrency peaked at $4.27 during the day before sliding again, this time dropping 1.43% to reach $4.13.
On Tuesday, there was some fluctuation with DOT as both buyers and sellers fought for dominance. Eventually, the sellers prevailed, causing DOT to decrease by 0.73%, reaching a price of $4.10. As of now, the ongoing session continues to see DOT in a downward trend as sellers continue to drive the price closer to $4.
Could Polkadot (DOT) Slip Below $4?
If the downward trend of DOT persists, there’s a possibility it might return to around $4. If sellers manage to push it lower, DOT could even dip to its long-term support at approximately $3.62. Interestingly, the daily chart seems to exhibit a potential triple bottom formation, which is usually a positive sign for price increase. However, DOT’s recent behavior has been somewhat mixed after it surpassed the falling trendline last week, immediately sliding back below it.
For any hope of recovery and potential increase, investors should maintain DOT‘s price above $4. A surpassing of $4.50 might signal an upcoming rise towards $5.
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2024-10-09 17:04