POLKADOT Price Analysis 11-1: DOT Slips Below $4 As Decline Continues

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As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I’ve seen my fair share of ups and downs in the crypto world. Polkadot (DOT) has been a rollercoaster ride this week, and Thursday’s substantial decline was just another twist in the tale.

On Thursdays trading, Polkadot (DOT) experienced a noticeable drop of nearly 6%, causing the price to dip under $4. This downturn followed as sellers took control and a sense of pessimism re-emerged in the larger cryptocurrency market.

Since its unsuccessful attempt to surpass the $4.60 mark on October 20, Polkadot (DOT) has been finding it challenging to gather steam and break through significant resistance points.

Polkadot (DOT)’s Mixed Week

Since the weekend, Polkadot (DOT) has been moving upward but has retreated slightly in the recent trading sessions following its unsuccessful attempt to surpass the 20-day Simple Moving Average (SMA). On Friday (October 25), DOT experienced a significant drop, decreasing more than 5% to reach a low of $3.84 before closing at $3.99, just below its support level of $4. The robust demand at this level caused DOT to rebound on Saturday, surpassing the $4 mark and settling at $4.03 after a 1% increase. Bullish sentiment became even stronger on Sunday as DOT climbed by 2.48%, eventually closing at $4.13.

The initial days of the week saw Polkadot (DOT) experiencing high volatility due to a tug-of-war between buyers and sellers. This struggle led to DOT reaching a low of $4 during the day, only to bounce back and reach an intraday high of $4.22. By the end of the first day, it had settled at $4.13. On Tuesday, buyers took charge, causing DOT to rise by 1.45% to $4.19. They even made an effort to surpass the 20-day Simple Moving Average (SMA), reaching an intraday high of $4.25, but ultimately lost steam and dropped back. The next day brought significant selling pressure on DOT, causing it to plunge to a low of $4.12. However, it managed to recover slightly from this level and close at $4.20 for the day.

A Substantial Decline

Looking at its price chart, Polkadot (DOT) has faced challenges in surpassing its 20-day Simple Moving Average (SMA), which has served as a significant barrier for growth due to increased selling pressure. This resistance caused DOT to dip into the negative territory on Thursday, decreasing approximately 6% and falling below $4 to reach a low of $3.90 before stabilizing at $3.96. During the current trading session, DOT reached a low of $3.88 but has since recovered slightly, with sellers still in control. As of now, DOT is experiencing minimal losses and is being traded at around $3.94, as buyers aim to push the price back above $4.

Future Price Action

Given the general markets moving bearish on Thursday, it was predicted that the price of DOT might decrease. As DOT has solid backing at $4, with investors stepping in, we anticipate DOT regaining $4 and potentially rising again towards $4.20 and its 20-day Simple Moving Average (SMA). However, whether these buyers can gather momentum to reach $4.50 is yet uncertain. Conversely, if sellers maintain control, there could be a fall to DOT’s long-term support at $3.62 before any potential reversal occurs.

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2024-11-01 17:08