Polkadot Price Analysis: DOT Struggles To Reclaim $7.50 As Bears Push Back

As an experienced analyst, I have closely monitored the Polkadot (DOT) price movements over the past few days. Based on the chart analysis and trends, I believe that DOT is currently at a critical juncture where it could either break out or experience waning bullish momentum.

On Tuesday, the price of Polkadot (DOT) experienced a significant decrease following its robust performance during the weekend. The peak of this upward trend was reached on Monday when DOT hit a new high of $7.78.

In more straightforward terms, DOT‘s price has significantly increased in recent trading periods. However, this growth hasn’t been enough to surpass the $7.50 resistance level. As a result, there might be a temporary halt in price action, following which we could witness another upward trend.

Polkadot (DOT) Eyes $7.50 Again

Examining the Polkadot (DOT) price history, it is clear that DOT experienced a significant jump in value on Monday, the 20th. The price rose from $6.92 to $7.58, with the 20-day Simple Moving Average (SMA) serving as a foundation for this upward trend. This price escalation even surpassed both the 50-day and 200-day SMAs. Tuesday’s trading was marked by extreme volatility, as sellers attempted to dominate the session. However, despite this volatility, the price remained above the crucial 200-day SMA, resulting in a minor gain of 0.53%.

On Wednesday (22nd), DOT experienced significant selling pressure, causing it to decrease by 2.10% to $7.46 but still managing to remain above its 200-day Simple Moving Average (SMA). However, this resistance was breached on Thursday as sellers drove the price down to a low of $6.91, breaking through four essential support levels. DOT then attempted a rebound and regained some ground, closing at $7.20. The session on Friday was marked by volatility, but the 50-day SMA served as a buffer for buyers entering the market at this level. As a result, DOT recorded a gain of 0.69%, halting the bearish trend.

Over the weekend, DOT experienced notable growth as I observed it climb by 2.34% on Saturday and an additional 1.75% on Sunday, reaching a closing price of $7.55. The weekend’s advancements also signified DOT surpassing its 200-day Simple Moving Average (SMA). In the volatile trading session on Monday, I witnessed DOT momentarily dipping below the established 200-day SMA before rebounding and settling at $7.63, placing it at a significant resistance level.

Dot’s downward trend continued last Tuesday as it failed to surpass a specific level, causing a 3.54% decrease and a drop below the 200-day Simple Moving Average (SMA), resulting in a closing price of $7.36. Presently, Dot is being traded at $7.44 during this session as investors attempt to challenge the resistance point at $7.50.

An Imminent Breakout Or Waning Bullish Momentum?

As a researcher examining the Polkadot (DOT) price trend, I notice distinct levels of support and resistance. The price has a robust foundation at $6.40, which has triggered notable demand surges in the past. Additionally, there is emerging support at $7.00. Conversely, we encounter strong resistance around $7.50, an area where the 200-day Simple Moving Average (SMA) lies. The DOT price pattern suggests a possible retest of this resistance level. If DOT manages to surpass this hurdle, we may witness bullish sentiments prevail, potentially pushing DOT towards $8.00.

Should buyers encounter obstacles and fail to advance beyond this point, there’s a possibility of a sideways trend with minor price reversals before significant price shifts occur. If the DOT token experiences a downturn, it may dip to around $7.10 in the near future. Currently, DOT is at $7.49 and buyers aim to push past $7.50 once more.

Based on the analysis of the funding rate and open interest graph, it appears that DOT‘s bullish trend has not resulted in substantial growth in open positions or funding rates. This observation implies a potential correction or consolidation phase, suggesting that traders have yet to significantly boost their long positions. If DOT fails to surpass $7.50 before initiating its next major price shift, it might enter a period of sideways movement.

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2024-05-29 11:04