As a seasoned crypto investor with a penchant for Polkadot ($DOT), I’ve seen my fair share of rollercoaster rides. This past week has been no exception, with $DOT plummeting below its critical support at $4 on Friday, only to bounce back above it over the weekend.
Last week was a rollercoaster ride for Polkadot. The value of $DOT dipped beneath its crucial support level on Friday following a drop to $3.82. Since then, it has rebounded and surpassed $4 again. But the question remains: can it sustain this rise?
Following another turbulent week, Polkadot ($DOT) has once more climbed over its $4 resistance level, bouncing back from a low of $3.82 it reached on Friday due to selling pressure.
$DOT Loses Ground
In more straightforward terms: The cryptocurrency DOT has faced difficulties in holding its key price points, specifically losing the $5 mark at the start of August. After touching its long-term support level of $3.62, DOT rebounded and seemed to be heading back towards $5. However, after briefly surpassing the $5 level, reaching a peak of $5.11 on August 24, it slid back and is now trading between $4. It reached its lowest point on Friday at $3.82.
Last week, Polkadot closed at a little over $4, specifically $4.07. But the demand for DOT at lower prices sparked a rebound on Monday, with DOT increasing by 3.44%, reaching $4.21. However, sellers managed to regain control on Tuesday, causing a 3.33% drop back to $4.07. On Wednesday, strong selling pressure pushed DOT down to $3.88. Despite this, the persistent demand for DOT at these levels helped it recover, ending the session at $4.11. Unfortunately, buyers couldn’t keep up the trend, and DOT dropped 2.19% to $4.02 on Thursday.
On Friday, the sellers continued to dominate, driving the price down to a low of $3.82 from $4. Buyers attempted to offset this selling pressure but failed to push the price back above $4. By the end of the session, DOT closed below its significant level of $4 at $3.96.
Saturday saw $DOT back above $4, closing the session at $4.07.
The current session sees $DOT trade at $4.12.
Where Does $DOT Go From Here?
The digital currency DOT exhibits robust resistance at the $4 level, which has been reinforced by two tests this week. Buyers have successfully lifted the price to safeguard this support. However, should this support be broken, it could potentially lead to a drop in DOT’s value down towards its significant $3.62 support established over several years.
Despite DOT currently consolidating above $4, there’s a possibility that strong buyer activity might sustain the upward trend, potentially propelling DOT beyond its 20-day Simple Moving Average (SMA) and the $4.50 mark.
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2024-09-08 20:43