As a seasoned analyst with years of market experience under my belt, I’ve seen my fair share of bull and bear runs. This week has been particularly challenging for Polkadot (DOT), which has been on a downward spiral since the beginning of the week. However, I’ve learned never to count out the resilience of the market, especially when it comes to a promising project like DOT.
On Friday, Polkadot (DOT) examined its underlying support following nearly an entire week of declines. Remarkably, despite this prolonged downtrend, DOT managed to rebound from its support threshold, indicating a persisting interest among buyers in the vicinity of $4.20.
Investors and market analysts are keeping a keen eye on the prices at $4 and $4.20, as these figures have become significant psychological points of support.
A Difficult Week For Polkadot (DOT)
Over the past week, Polkadot (DOT) has experienced a downturn, with its value decreasing by approximately 3.21% at the end of last week. As buying momentum waned, selling pressure took over, causing DOT to drop more than 5% on Monday, dipping below the 20-day moving average and settling at $4.56. Buyers made an effort to regain control on Tuesday, pushing DOT up to a daily high of $4.66. However, selling forces countered this recovery attempt, causing DOT to slip back into the red for the third day in a row, losing the $4.50 mark and settling at $4.38. The selling pressure persisted on Wednesday, driving DOT down by 2.74% to $4.26, as sellers aimed to push the price below the $4.20 support levels.
On Thursday, as DOT approached its support point, buyers made another attempt at a comeback, driving DOT to a daily high of $4.40 in an effort to reclaim $4.50. However, demand dwindled at higher prices causing DOT to slide again, resulting in a minor decrease of 0.23%. Significantly, the buyers managed to keep DOT above its support level by the end of trading. On Friday, DOT was tested at its support level as sellers pulled the price down to a daily low of $4.10. The sellers’ momentum faded as buyers stepped in between $4 and $4.20, causing the price to rise to $4.29 after a 0.94% increase. Currently, DOT is trading 0.70% higher at $4.32. If the buyers can maintain this upward trend, they will aim to regain the $4.50 price point. Notably, there’s robust support at the $4.20 level, preventing sellers from exerting pressure at lower prices.
Sentiment Uncertain
The general feeling towards Polkadot (DOT) is somewhat unclear. Yet, the $4.20 mark has served as a supportive barrier, preventing the price from diving further down. Nevertheless, it hasn’t picked up enough momentum to spark a substantial price rise thus far. The Moving Average Convergence Divergence (MACD) suggests that bears might be regaining control if Polkadot trends continue to slow. Additionally, trading interest in DOT has decreased over the past week, although it slightly rose during the last couple of days.
Moving forward, can DOT maintain its momentum and surpass the $4.50 mark? If so, it may continue its journey towards $5. However, for this to happen, DOT needs to hold above the $4.20 support. But what if the market sentiment shifts unfavorably? In that case, sellers might regain control and push DOT below $4.20, potentially causing a drop to $4. Here, buyers might make an effort to initiate a recovery rally. If this level is breached, the focus will shift towards the long-term support at $3.60.
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2024-08-31 15:33