Polkadot Price Analysis: $DOT Rebounds But Struggles To Move Past $6.50

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As a long-term crypto investor with a significant portion of my portfolio allocated to Polkadot (DOT), I have seen this cryptocurrency go through its fair share of price volatility. The recent week was no exception, as DOT registered a sharp drop below the crucial $6 support level, only to rebound and attempt several times to push above the resistance at $6.50.

During the past week, Polkadot (DOT) experienced a significant decline in value, with sellers causing the price to reach a bottom of $6.02. Despite this drop, there was robust buying interest at these lower prices, preventing the price from falling below the vital support level of $6.00.

Although DOT bounced back on Friday, it has failed so far to surpass the resistance point at $6.50. Sellers continue to put up a strong defense at this price level.

Polkadot (DOT) Struggling To Push Above $6.50

Polkadot (DOT) experienced an intriguing week with its price experiencing a rally followed by a substantial decline. Over the past 24 hours, DOT has recorded a 4% surge in value, bouncing back from several days of negative territory. The cryptocurrency has been subject to intense struggle between buyers and sellers throughout the week, as buyers endeavored to drive the price above $6.50 while sellers sought to drag it below the crucial $6 support mark.

On July 11, DOT dipped beneath its 20-day Simple Moving Average (SMA) due to unsuccessful efforts by buyers to push prices above $6. Consequently, the price fell to $5.90. However, the following day saw a rebound of 3.56% for DOT, pushing it back above the 20-day SMA and closing at $6.11. Buyers maintained control throughout the weekend, causing DOT to climb further by 1.96% on Saturday and an additional 1.44% on Sunday, wrapping up the week at a price of $6.32, which was only slightly below its 50-day SMA.

On Monday, DOT surpassed its 50-day moving average (SMA) due to a notable 2.69% rise, reaching a value of $6.49. Yet, despite the optimistic market sentiment over the preceding days, sellers fiercely guarded the $6.50 mark, preventing DOT from advancing further. Consequently, DOT slid back into negative territory on Tuesday, touching a daily low of $6.14. Despite this setback, the 20-day SMA provided crucial support, allowing DOT to rebound and close at $6.34 – representing a 2.34% decrease. Buyers attempted to break through the resistance level of $6.50 on Wednesday, pushing DOT up to a peak of $6.53. However, their efforts waned, giving way to selling pressure that caused DOT to fall beneath its 50-day SMA, closing at $6.26.

On Thursday, the price of DOT dipped further down to $6.09, defying the significant selling pressure. However, the digital asset managed to avoid slipping below the critical $6 mark due to robust demand from buyers at lower prices. In a surprising turnaround, DOT regained momentum on Friday and rallied 4.27%, breaking back above its 50-day Simple Moving Average (SMA) and reaching $6.35 once more.

What Next For Polkadot (DOT)

In the present market scenario, both buyers and sellers are vying for dominance over the price action of DOT. The cryptocurrency has been oscillating between $5.50 and $6.50 since mid-June, implying robust buying interest at lower prices and selling pressure at higher levels. For a significant price rise, DOT needs to surpass the $6.50 barrier and sustain above it. In such a case, we might witness a surge towards $7. However, sellers are anticipated to mount resistance at these levels.

If DOT takes a downturn, there’s a possibility it may fall to $6. This is the point where investors are predicted to step in and buy, providing support for the price. A more substantial decline below $6 could push the price down to $5.

A Lot Happening At Polkadot

In the June 2024 report, Polkadot (DOT) showcased significant advancements. The document delved into the Alpha Program and parachains’ major improvements, as well as new functionalities added to the Generic Ledger app. Notably, there was a remarkable increase in the utilization of Snowbridge, Polkadot-Ethereum bridge, which debuted approximately a month prior. Furthermore, an essential update included the completion of the OpenZeppelin team’s development on a comprehensive EVM Parachain Runtime template. However, its release will be announced following a thorough audit process.

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2024-07-20 13:01