Polkadot Price Analysis: Bearish Sentiment Reigns. Can DOT Stay Above $7?

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As a researcher with experience in analyzing cryptocurrency markets, I’ve been closely monitoring the Polkadot (DOT) price movement over the past few days. From my observation, DOT faced significant resistance at $7.60 and saw a considerable decline below the $7 level after being unable to break through this resistance.

At a price of $7.60, Polkadot (DOT) encountered strong opposition and subsequently dropped significantly, falling below the $7 mark in the following trading periods.

As an analyst, I’ve observed an uptrend in Polkadot (DOT) over the past few days, with the price surging from its support level at $6.40 to reach a high of $7.50. However, it appears that sellers have now regained control and are pushing the price back down.

Can Polkadot (DOT) Hold Above $7

At a price of $7.60, Polkadot (DOT) experienced substantial selling pressure, resulting in a notable drop in price. The coin is now trading between resistance at $7.60, which is also where the 200-day Simple Moving Average (SMA) lies, and support at $6.40. On May 21, DOT encountered rejection at this level, causing the price to fall to $7.20 by May 23 after dipping below the 200-day SMA. However, it found a bounce at the 50-day SMA on May 24, recording a 0.69% increase following a tumultuous trading session. DOT continued its upward trend on May 25, reaching $7.42 and touching the upper boundary of its current price range.

On the 26th, buyers held the reins as DOT surged ahead, breaking past its 200-day Simple Moving Average (SMA) at $7.55. At the start of the current week, DOT showed volatility with a high of $7.78 and a low of $7.37, bouncing back to close at $7.63. However, this level proved insurmountable and DOT plummeted on Tuesday, dipping beneath the 200-day SMA and landing at $7.36. Buyers attempted a comeback on Wednesday, driving up DOT to $7.56, but sellers reclaimed control and dragged the price down to $7.17. DOT maintained its bearish trend on Thursday and Friday, sinking below $7 to $6.97.

After reaching this point, DOT has successfully reversed its downtrend in the current trading session following a rally from the $7 support level. At present, the price has risen by 1%, currently priced at $7.04.

Another Decline For Polkadot (DOT)?

Observing the Polkadot (DOT) price graph, the asset is presently lying between a critical price range. The upper boundary of this range is located at $7.60, while the lower boundary is established at the $6.40 support level. Any notable price fluctuation would necessitate DOT surpassing these price points. At present, DOT is trading slightly above the $7 threshold. If buyers manage to regain control during the current trading period, we could witness DOT advancing towards $7.20 and subsequently reaching $7.50. However, the 200-day Simple Moving Average (SMA) may act as an impediment at this price level.

Should DOT‘s price fall below $7, it may slip down to its underlying support at $6.40. In essence, DOT is teetering at a crucial juncture. If it fails to maintain its existing support lines, we could witness substantial decreases for DOT. However, if the price remains above $7, there might be some sideways movement before another potential surge, although whether DOT can surpass its current pricing threshold is uncertain.

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2024-06-01 11:39