Polkadot (DOT) ended Friday with an increase of 1.45%, pushing it to $4.19, as it looks to recover after falling to a low of $3.99 on Thursday.
DOT has been bearish for most of the week, having given up the gains it made during the previous week when its price peaked at $4.96. However, a move above $5 remains elusive.
Let’s recap Polkadot (DOT)’s week. DOT was bullish the previous week, reaching a day high of $4.96 on Friday. However, it failed to push above $5, a level from which it has been rejected before. As a result, DOT fell back into the red over the weekend after buyers lost momentum and sellers took control, dropping by 2.04% on Saturday and a further 0.42% on Sunday to end the weekend on a bearish note. Selling pressure and bearish sentiment intensified on Monday as the week began, with DOT dropping by almost 7% and slipping below $4.50 to settle at $4.44.
Source: TradingView
With markets turning bearish on Tuesday thanks to escalating tensions in the Middle East, DOT continued to drop after a failed recovery, dropping by 6.31% to slip below the 20 and 50-day SMAs and settle at $4.16. Wednesday saw DOT navigate through considerable volatility as buyers and sellers sought to establish control, with the price moving in both directions. Sellers eventually gained the upper hand, pushing DOT down by 1.44% to $4.10.
Polkadot (DOT) fell below $4 on Thursday, dropping to a day low of $3.99. However, this is a level where DOT has strong support, and it rebounded as buyers took over, registering an increase of 0.73% to climb back above $4 and settle at $4.13. DOT’s recovery continued on Friday, as it registered an increase of $1.45% to move to $4.19. The current session sees DOT marginally up as buyers and sellers struggle to establish control.
DOT is oscillating between $4, where it has strong support, and $5, where it faces significant resistance, having been rejected from this level before. Sellers attempted to push the price below $4 earlier in the week but were unsuccessful. However, should this level be breached, DOT will fall back to its multi-year support of $3.62. On the other hand, buyers have struggled to push above $5, a level where sellers are active.
To push back towards $5, DOT must first push above $4.50 and the 20 and 50-day SMAs. If it can do that, a move to $5 will be possible. However, whether it can push above $5 remains to be seen. A push above $5 requires a catalyst to trigger a strong bull run. Analysts are of the opinion that DOT is nearing the end of its accumulation phase, and a breakout is imminent. Should this occur, DOT will break above $5 and potentially reclaim $6.
Polkadot took a significant step to improve decentralization by adopting the Decentralized Nodes Program. Polkadot aims to enrich its ecosystem by emphasizing on security, sustainability, and trust-free operations, helping expand the validators’ possibilities to promote the further decentralization of the ecosystem. Polkadot’s Decentralized Nodes Program further decentralizes and secures the network. The application is public, with validators’ applications currently active until October 31, 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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