Polkadot (DOT) has made a strong recovery this week after falling to a low of 3.98 earlier this week. Despite starting the week in the red, DOT has recovered strongly and is once again testing the $4.50 level.
Market watchers are hopeful that with the return of bullish sentiment to the markets, DOT can finally break above $4.50 and $5.
Polkadot (DOT) Starts The Week In The Red
Polkadot (DOT) has been attempting to push above the $4.50 level since the weekend but has been bogged down by stubborn resistance as demand dries up at upper levels. As we can see in the price chart, DOT attempted a move past $4.50 and the 50-day SMA on Sunday, rising to a day high of $4.56. However, as buyers lost steam, sellers took control and pushed DOT into the red. DOT eventually ended the weekend on a bearish note, down 0.90% at $4.40. Selling pressure intensified on Monday as DOT dropped by 4.55% to go below the 20-day SMA and settle at $4.20. Buyers attempted a move back above the moving average on Tuesday but could not do so, as sellers pushed DOT down another 0.95% to $4.16.
Source: TradingView
Sellers continued to exert influence on Wednesday, dragging DOT to a day low of $3.98. However, DOT has strong support at $4, a level that has been tested several times. With DOT dropping close to this level, buyers entered the market, thwarting sellers and pushing DOT back above $4. The price eventually settled at $4.17 after a marginal increase.
Polkadot (DOT) Recovers But Hits Wall At $4.50
With a marginal recovery on Wednesday, buyers seized the initiative on Thursday, pushing DOT back above the 20-day SMA after an increase of 2.16% allowed it to settle at $4.26. Buyers attempted to push higher but could not do so despite reaching a day high of $4.35. The current session sees DOT up by almost 3% as buyers look to push above $4.50. As we can see in the price chart, sellers have already thwarted buyers, being pushed back after reaching a day high of $4.49.
So, is a move above $4.50 a bridge too far for DOT? At the moment, demand is drying up at upper levels as buyers lose steam, allowing sellers to push the price down. However, if buyers can keep DOT above $4.20, we could see a retest of the $4.50 level. Should buyers break above this level, DOT could target a move to $5.
Can Agile Coretime Be The Catalyst For A Bullish Reversal?
One of the reasons why market watchers believe DOT can push above its resistance levels this time is the introduction of Agile Coretime. Agile Coretime, hailed as one of the foundations of Polkadot 2.0, was released on September 19 and significantly boosts network performance, capacity, and usability by introducing dynamic resource allocation to enhance network efficiency, drawing considerable interest from developers and investors. Investor interest can be gauged by DOT’s price movements, which registered a jump of 8% and is currently up over 4%. Polkadot’s market cap has also registered a jump to over $6.5 billion, an increase of 4.43%, while trading volume has jumped almost 20%.
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.
