Polkadot (DOT) broke above the $4.50 level, which had been acting as a strong resistance after an impressive increase of 4.04% on Tuesday.
DOT has rebounded strongly after dropping to an intra-day low of $3.98 on September 18, and is up almost 15% over the past 7 days.
Polkadot (DOT) Rebounds From September 18 Low
After failing to push above the downward-sloping 50-day SMA on September 15, DOT fell back into the red as sellers took control. By Wednesday (September 18), DOT fell to a low of $3.98, bringing the $4 support level into focus. As buyer activity picked up at lower levels, DOT recovered and settled at $4.17 after registering a marginal increase of 0.24%. DOT continued its upward trajectory on Thursday, going above the 20-day SMA and settling at $4.26. Buyers attempted a move above $4.50 on Friday as DOT rose to a day high of $4.49, going above the 50-day SMA. However, sellers drove DOT back below the 50-day SMA, eventually settling at $4.34 after an increase of 1.88%.
Source: TradingView
DOT had a mixed weekend as it registered an increase of 2.76% on Saturday to go above the 50-day SMA and settle at $4.46. However, thanks to strong resistance at $4.50, sellers were able to wrest control on Sunday as buyers lost momentum. As a result, DOT fell back into the red on Sunday, dropping to a day low of $4.24. However, with the 20-day SMA acting as a dynamic level of support, DOT made a recovery of sorts and rose to $4.31, registering a decline of 3.36%.
Polkadot (DOT) Finally Pushes Above $4.50
The current week began on a very positive note for DOT, as it registered an increase of 3.48% to push above the 50-day SMA and settle at $4.46. On Tuesday, DOT finally moved above the $4.50 level after registering an increase of 4.04% and settling at $4.64. The current session sees DOT marginally up as buyers and sellers look to establish control. Sellers will look to push DOT back below $4.50. However, DOT could find support at the 50-day SMA or the 20-day SMA. On the other hand, if buyers can maintain their current momentum, DOT could rally to $5.
What Next For Polkadot (DOT)?
Despite struggling for a considerable amount of time, Polkadot (DOT) seems ready to break out of its shell and embark on a strong rebound. DOT pushed above a key hurdle on Tuesday when it went above the $4.50 resistance after being rejected several times. With support building at $4.20 and $4.40 and DOT pushing above $4.50, it looks primed to push to $5 or even beyond. Furthermore, DOT has seen a spike in retail interest, with data from CoinGlass showing strong buying interest. There has also been a liquidation of short positions, with those betting against DOT registering significant losses.
Source: CoinGlass
DOT’s RSI is also on an upward trajectory, indicating that buyers have plenty of room to push DOT higher without climbing into the overbought zone.
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.
