Polkadot (DOT) resumed its push toward $5 after facing considerable volatility and selling pressure on Wednesday. DOT is up almost 14% in a remarkable turnaround since dropping to a low of $3.98 last Wednesday.
Market watchers are hopeful DOT’s recent uptick could act as a catalyst and drive it beyond $5, a level it has struggled to move past since the beginning of August.
Can Polkadot (DOT) Continue Rally?
Polkadot (DOT) has made an impressive recovery since slipping below $4 on September 18, when sellers drove it to $3.96. However, it rebounded thanks to strong support, allowing it to reclaim $4 the following day and push above the 20-day SMA. DOT reached a day high of $4.49 on Friday but, with intense selling pressure at this level, fell back and settled at $4.34 after an increase of 1.88%. DOT rose to $4.46 on Saturday and pushed above the 50-day SMA after an increase of almost 3% but fell back in the red on Sunday as sellers pushed it back below the moving average to $4.31.
Source: TradingView
Sellers also attempted to drive DOT below the 20-day SMA but could not do so as sellers lost steam. The current week started with DOT back in positive territory after an increase of 3.48% pushed it back above the 50-day SMA to $4.46. Bullish sentiment persisted on Tuesday, with DOT rising by just over 4% and finally breaking above $4.50 to settle at $4.64. DOT faced considerable volatility on Wednesday as sellers pegged DOT back after it rose to a day high of $4.77 and sought to push it back below $4.50. However, buyers countered the selling pressure, ensuring DOT remained at $4.64.
Is $5 And Beyond A Possibility?
The current session sees DOT up by just over 3% as it sets its sights on $5. Whether it can get past this level remains to be seen, as sellers are expected to defend it fiercely. For now, buyers are in control as they look to test the resolve of the bears. DOT, currently in an ascending triangle pattern, could jump to $5.1, given it has gone above a crucial level at $4.50. DOT’s RSI and the MACD are also bullish, indicating strong positive sentiment around the asset. Moreover, it has also seen a jump in retail interest.
Should a move above $5 fail, DOT could drop back to $4.50, where it could find support. Should it go below this level, it will fall to $4.40 or $4.20.
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.
