As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I find myself intrigued by Polkadot’s (DOT) current situation. Over the past week, DOT has shown resilience and potential, managing to push above its 20-day SMA despite encountering resistance at $4.50.
As I analyze the current market trends, I find that my research on Polkadot (DOT) indicates a stagnation following an encounter with resistance at approximately $4.50. During this session, there’s been a slight dip of nearly 1%, which could potentially be due to sellers aiming to push the price below the 20-day Simple Moving Average (SMA).
Although there was a decline during today’s trading, Digital Opportunity Trust (DOT) had a productive week overall. It experienced an increase of 2.34% within the last 24 hours and nearly 9% over the past seven days. Notably, it surpassed its 20-day Simple Moving Average (SMA) on Thursday.
Polkadot (DOT) Faces Resistance At $4.50
On Friday, Polkadot managed to maintain its position above the 20-day Simple Moving Average (SMA) despite facing significant selling pressure. However, it was anticipated that it would meet resistance at the $4.50 mark, which sellers were prepared to guard. The DOT token dipped below $4 on Friday (Sept 6), reaching a daily low of $3.82 before buyers stepped in to lift the price up to $3.96. Thanks to robust support at this level, it regained $4 the next day, recording a 3.28% increase and closing at $4.09. DOT continued its upward trend on Sunday, increasing by 1.96% and ending the day at $4.17. Sellers made attempts to regain control on Monday but were unable to do so as buyers remained influential. As a result, DOT saw a surge of 2.88% and moved to $4.29, settling just under the 20-day SMA.
On Tuesday, DOT experienced a decline and ended up in the negative territory, losing nearly 1%, with its closing price at around $4.25, as the 20-day Simple Moving Average served as a barrier of resistance.
Bearish Pressure Intensifies
On Wednesday, selling pressure grew stronger and DOT dropped to a low of $4.07. However, as usual, demand resurfaced at lower levels, helping DOT recover some losses. The coin ended the day at $4.19, losing 1.41%. The following day saw renewed demand, with buyers re-entering the market. This bullish sentiment led to a rise of 2.63% for DOT, pushing it above its 20-day Simple Moving Average (SMA) and settling at $4.30. DOT’s move above the 20-day SMA was quite meaningful, suggesting that the bearish trend was weakening and demand was strengthening. The strong bullish sentiment can be observed in the Moving Average Convergence Divergence (MACD), which turned bullish at the start of the week.
On Friday, DOT kept climbing higher, maintaining its place above the 20-day Simple Moving Average (SMA), ultimately recording a rise of more than 3% to end at $4.43. The anticipation was that DOT would encounter significant resistance at $4.50, and true to predictions, selling pressure intensified as it approached this price point. At present, DOT is experiencing a decrease of 0.68%, with buyers and sellers vying for control.
Can Polkadot (DOT) Resume Its Upward Trajectory?
What’s the likely scenario for DOT moving forward? At present, DOT is encountering resistance around $4.50 and its 50-day Simple Moving Average (SMA). If buyers regain control, DOT might challenge these levels further, potentially leading to a break above $5. Conversely, sellers aim to push DOT below its 20-day SMA. However, DOT has solid support at $4, and selling pressure is waning at lower levels, suggesting a swift rebound. For now, the advantage seems to be with the buyers.
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2024-09-14 18:12