Polkadot Price Analysis: DOT Eyes $5 After Pushing Above $4.50

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As a seasoned crypto investor with a knack for spotting promising opportunities, I must admit that Polkadot (DOT) has been quite intriguing lately. After witnessing its impressive surge above the $4.50 level, I find myself optimistic about its potential to continue its upward trajectory.

As a researcher, I observed yesterday that Polkadot (DOT) surpassed the significant resistance at $4.50, a level it had previously struggled with following a noteworthy growth spurt of 4.04%.

After touching a daily low of $3.98 on September 18th, DOT has experienced a significant recovery, increasing approximately 15% in the last seven days.

Polkadot (DOT) Rebounds From September 18 Low

Following an unsuccessful attempt to surpass the descending 50-day Simple Moving Average (SMA) on September 15, DOT dipped into negative territory as sellers gained dominance. By Wednesday (September 18), DOT had plunged to a low of $3.98, drawing attention to the $4 support level. As buying activity grew at lower prices, DOT rebounded and closed at $4.17 after experiencing a slight growth of 0.24%. On Thursday, DOT moved above its 20-day SMA and finished the day at $4.26. Buyers tried to push DOT above $4.50 on Friday as it climbed to a high of $4.49, also surpassing the 50-day SMA. However, sellers forced DOT back below the 50-day SMA and it ended the day at $4.34 after a rise of 1.88%.

Over the weekend, Polkadot (DOT) experienced a rollercoaster ride. On Saturday, it saw a growth of 2.76%, surpassing its 50-day Simple Moving Average (SMA) and reaching $4.46. But on Sunday, due to robust resistance at $4.50, sellers managed to take over as the buying momentum waned, causing DOT to slide back into negative territory, touching a low of $4.24 for the day. However, its 20-day SMA served as a support level, helping DOT rebound slightly to $4.31, marking a daily decrease of 3.36%.

Polkadot (DOT) Finally Pushes Above $4.50

This week started off favorably for DOT, with a 3.48% growth that allowed it to surpass its 50-day Simple Moving Average (SMA) and reach $4.46. On Tuesday, DOT managed to break the $4.50 barrier following a 4.04% increase, closing at $4.64. As of now, DOT is slightly higher in the current trading session as both buyers and sellers vie for control. Sellers might try to pull DOT back under $4.50, but it could find support at either its 50-day or 20-day SMA. If buyers maintain their present strength, however, DOT may surge towards $5.

What Next For Polkadot (DOT)?

After facing challenges for some time, Polkadot (DOT) appears poised to emerge vigorously and potentially rebound strongly. On Tuesday, DOT surpassed the $4.50 barrier, a significant hurdle it had previously failed to clear multiple times. With steadily growing support at $4.20 and $4.40 levels, and DOT now above $4.50, it seems poised to reach $5 or potentially higher. Additionally, there’s been an increase in retail interest towards DOT, as indicated by data from CoinGlass that shows strong buying activity. Moreover, a significant number of short positions have been liquidated, resulting in substantial losses for those who had bet against DOT.

The Relative Strength Index (RSI) for DOT is likewise trending upwards, suggesting that there’s ample opportunity for buyers to drive DOT prices further up without approaching the overbought threshold.

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2024-09-25 16:09