As a seasoned researcher with years of experience in the crypto market, I must say that Polkadot (DOT) has been on quite a rollercoaster ride lately. After dipping below $4, it’s heartening to see DOT recover and reclaim this crucial level. However, the persistent selling pressure is a cause for concern.
Following a dip under the significant support point on Friday, causing the price to drop as low as $3.82 due to selling pressure, Polkadot (DOT) has now surpassed $4 once again.
In the past few months, DOT has faced difficulties, dropping below the $5 mark in early August and reaching its multi-year support level of $3.62. However, it managed to bounce back from this low, moving steadily towards a return to $5. By August 24th, DOT had climbed up to a high of $5.11, but then showed signs of bearishness and fell below the $4 mark in the recent days.
Polkadot (DOT) Continues To Lose Momentum
Polkadot (DOT) has registered a drastic drop in its market cap as selling pressure continues to weigh its price down. The altcoin is trading below the 20, 50, and 200-day SMAs as buyers struggle to keep it above $4. DOT ended the previous week in the red with a drop of 4.46%, which pushed the price down to $4.07. The current week began with an increase of 3.44% as DOT rose to $4.21. However, with demand drying up at upper levels, DOT fell back in the red on Tuesday, falling by 3.33% to $4.07. On Wednesday, sellers attempted to overwhelm the $4 support level, pushing DOT to a low of $3.88. Strong lower-level demand allowed DOT to recover and push back above $4 despite the selling pressure. DOT eventually registered an increase of 0.98% to settle at $4.11.
On Thursday, sellers resumed dominance, causing DOT to dip 2.19% to $4.02. The selling force grew stronger on Friday, pushing the price below $4 and reaching a low of $3.82. Buyers managed to curb some of the selling pressure, resulting in DOT closing at $3.96, falling below the significant $4 mark. In the current session, DOT has regained over 2% and reclaimed the $4 level, currently trading at $4.04.
What Next For Polkadot (DOT)?
Let’s discuss possible upcoming strategies for Polkadot (DOT). Right now, $4 appears as a solid base for DOT, which has been challenged twice this week, but buyers have managed to hold it on both occasions. If this level is broken, the long-standing support of $3.62 will become crucial. The bulls are expected to put up a strong fight at this level to minimize any additional losses. A break below this level could suggest a surge in bearish feelings towards DOT.
If DOT surpasses $4 and buyers gain traction, they might aim for a move beyond the 20-day Simple Moving Average (SMA) and $4.50. Although it seems improbable currently, overcoming this level could hint at a possible rise towards $5. However, if DOT fails to advance from this point, we may witness a fall back down to $4.
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2024-09-07 15:28