As an analyst with over two decades of experience in the crypto market, I’ve witnessed numerous ups and downs, bull runs, and bear markets. The current situation with Polkadot (DOT) is particularly interesting due to its unique technical setup and recent developments like Agile Coretime.
This week, Polkadot (DOT) has bounced back significantly from its low of $3.98 earlier on, showing a robust rebound. Initially posting losses at the start of the week, DOT has since demonstrated a powerful recovery and is currently attempting to break through the $4.50 mark again.
Market observers remain optimistic that as a result of renewed positive investor sentiment, Polkadot (DOT) may eventually surpass the price points of $4.50 and $5.
Polkadot (DOT) Starts The Week In The Red
Since the weekend, Polkadot (DOT) has been making efforts to surpass the $4.50 mark, yet persistent resistance has hindered its progress as interest in buying diminishes at higher price points. In the price chart, we can observe that DOT made an attempt to breach the $4.50 and the 50-day Simple Moving Average (SMA) on Sunday, reaching a daily high of $4.56. However, as purchasing momentum waned, selling pressure took over, causing DOT to dip into negative territory. The cryptocurrency closed the weekend with a bearish sentiment, down by 0.90% at $4.40. Selling pressure escalated on Monday as DOT plummeted by 4.55%, falling beneath the 20-day SMA and settling at $4.20. Buyers made an effort to regain control above the moving average on Tuesday, but were unsuccessful, resulting in a further 0.95% drop for DOT, bringing its price down to $4.16.
On Wednesday, sellers held sway, pulling DOT down to a daily low of $3.98. Yet, DOT has a robust support base at the $4 mark, which it has repeatedly encountered. As DOT neared this level, buyers stepped in, countering the sellers and moving DOT back above $4. The price eventually stabilized at $4.17 following a slight uptick.
Polkadot (DOT) Recovers But Hits Wall At $4.50
On Wednesday, there was a modest rebound that gave buyers control on Thursday. They managed to move DOT beyond its 20-day Simple Moving Average following a 2.16% rise, which placed it at $4.26. However, despite reaching a peak of $4.35, buyers failed to push higher. In the current trading session, DOT is almost 3% up as they aim to surpass the $4.50 mark. As shown in the price chart, sellers have countered the buyers’ efforts, pushing them back after reaching a high of $4.49.
Could reaching $4.50 prove challenging for DOT, given the current market dynamics? At present, there seems to be a decrease in demand at higher price points as buyers appear to be running out of momentum, potentially allowing sellers to drive the price lower. Nevertheless, if buyers manage to maintain DOT’s value above $4.20, we might witness another attempt to reach the $4.50 mark again. Should buyers successfully surpass this level, DOT could aim for a further upward movement towards $5.
Can Agile Coretime Be The Catalyst For A Bullish Reversal?
One reason experts think DOT might break through its resistance levels this time is due to the debut of Agile Coretime, a key component of Polkadot 2.0. Released on September 19, Agile Coretime improves network performance, capacity, and user-friendliness by implementing dynamic resource allocation for better network efficiency. This innovation has sparked interest among developers and investors, as evidenced by DOT’s price increase of around 8% and a current rise of over 4%. Additionally, Polkadot’s market cap has grown to over $6.5 billion, marking an increase of 4.43%, while trading volume has nearly doubled.
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2024-09-20 15:02