Polkadot (DOT) has been in the red since the weekend, with the altcoin having given up all the gains made since its September 18 recovery.
DOT registered substantial declines on Monday and Tuesday, taking its price below key support levels and the 20 and 50-day SMAs.
Polkadot (DOT) Struggles As Bearish Sentiment Takes Hold
Polkadot (DOT) reached a day high of $4.97 on Friday as it looked to push above $5. However, it has all been downhill since then, as sentiment changed over the weekend. Due to strong resistance at $5, DOT fell back into the red on Saturday, registering a drop of 2.04% to settle at $4.79. DOT continued to decline on Sunday, falling to $4.77 after a marginal decline. Selling pressure intensified as the current week began with a substantial drop of almost 7%. As a result, DOT slipped below $4.50 and settled at $4.44.
Source: TradingView
With market conditions turning bearish following escalating tensions in the Middle East, DOT registered another substantial drop on Tuesday, dropping by 6.31% to $4.16. This drop also meant DOT slipped below the 20 and 50-day SMAs, falling to a low of $4.04. Wednesday saw considerable volatility as buyers attempted a recovery while sellers attempted to push DOT below the $4 support level. Ultimately, DOT registered a drop of 1.44% and settled at $4.10. The current session sees DOT remain in the red, with the price down by 1.22% at $4.05.
What Next For Polkadot (DOT)
So what’s the next move for DOT? DOT has a very strong level of support at $4, and buyers are expected to strongly defend this level to prevent a further decline. Should this level be breached, DOT’s multi-year support at $3.62 will be put into focus. However, DOT has been oscillating between $4 and $5 since the beginning of August, and market watchers are hopeful it can rebound from this level and chart a path back to $5. A path back to $5 depends on prevailing geopolitical situations and how the market reacts to them. If the crypto market sees a recovery over the next couple of days, DOT will recover as well. Whether it can push above $5 remains to be seen, although such a move would require a catalyst to spark a bull run.
For the moment, buyers must ensure DOT remains above the $4 support level.
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.
