Polkadot Price Analysis: DOT Fails To Get Past $7.5, Another Decline Coming?

As a crypto investor with some experience under my belt, I’ve seen Polkadot (DOT) go through its fair share of ups and downs. The recent decline from $7.5 was a setback, but not entirely unexpected given the resistance at that level.

Polkadot (DOT) experienced a significant drop in value midweek, with bears successfully pushing back against attempts to breach the $7.5 mark. As a result, DOT’s price dipped by more than 5%, reaching a new low of $7.19.

As an analyst, I’ve observed that DOT‘s price action remains confined within a range. Notably, the support level has continued to keep the prices afloat. Currently, the asset is attempting to breach the upper boundary of this range at around $7.50. The direction of the next move – whether it results in a pullback or a breakout above the resistance – remains uncertain.

Polkadot (DOT) Registers Drop From $7.5 

The price of Polkadot (DOT) experienced a significant drop from its previous level of $7.62, as selling pressure overcame the cryptocurrency at its 200-day Simple Moving Average (SMA). Following a 3.21% decline on the last day of the previous week, DOT closed at $6.93. Despite this setback, the digital asset managed to rebound due to support from its 20-day SMA. With renewed optimism in the market, DOT initiated the new week with a robust increase of 9.38%, enabling buyers to regain control. This uptrend propelled DOT above not only its 20-day and 50-day SMAs but also its 200-day SMA, causing its price to reach $7.58.

As a researcher analyzing DOT‘s price movements, I identified a pivotal level of resistance after an unstable trading day on Tuesday resulted in a minimal gain of 0.53% for DOT. However, sellers took charge the following day, causing DOT to drop by a significant $7.46%. The bearish trend deepened on Thursday as DOT plummeted to a low of $6.91 and fell beneath both the 50-day Simple Moving Average (SMA) and the 20-day SMA. Fortunately, DOT managed to regain some ground, declining by 3.49% and settling at $7.20 – a price that remained above the 50-day SMA.

On Friday, DOT experienced a slight uptick despite another day marked by significant price fluctuations. The cryptocurrency reached a peak of $7.39 and a low of $7.02 before closing at $7.25. Notably, DOT managed to maintain a position above the $7 mark, suggesting that there is growing support around its 5-day Simple Moving Average (SMA). Currently, DOT is trading at $7.29, representing a 0.55% increase. If buyers continue to dominate the market, we might observe another attempt by DOT to breach the resistance level of $7.50.

Could Polkadot (DOT) See Another Decline? 

Observing the Polkadot (DOT) price history, the strong support for DOT is evident at the $6 mark. Following its decline on Thursday, DOT managed to regain stability around its 50-day Simple Moving Average (SMA), suggesting that investors are actively purchasing DOT at this price point. The next notable resistance lies at $7.50, a level which has previously been challenged. If the support persists at the current SMA, there’s a possibility that DOT may attempt to reach the resistance level once more.

As a crypto investor, I’ve been closely monitoring the price action of DOT. If a reversal occurs and the price falls, DOT might reach as low as $7.20 or even $7. In contrast, if DOT manages to break above the resistance at $7.50, we could witness the price soaring towards $8 or potentially surpassing it. This week, DOT came within striking distance of breaking past the $7.50 barrier, but unfortunately, bears managed to push the price back down. Based on the current technical analysis, the MACD remains bullish, and the RSI is situated in the neutral zone. This signifies that DOT has ample room for growth without entering overbought territory.

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2024-05-25 10:39