Polkadot (DOT) reclaimed $4 following an impressive recovery after the elections, as crypto markets rallied after Republican candidate Donald Trump was declared victorious.
DOT has struggled in recent weeks and slipped below $4 last week following a substantial decline, as bearish sentiment weighed the price down.
Polkadot (DOT) Registers Sharp Fall
Polkadot (DOT) has struggled to push above the 20-day SMA during the past few weeks. Buyers attempted to go above this level last week but lost momentum, allowing sellers to take over. As a result, DOT registered a substantial drop of almost 6% on Thursday, going below $4 to an intraday low of $3.89 before settling at $3.95. DOT continued to drop on Friday, falling to $3.91 after falling just above 1%. Sellers retained control on Saturday as DOT registered a marginal drop and settled at $3.90. Bearish sentiment intensified on Sunday as DOT plummeted to an intraday low of $3.65, bringing its multi-year support of $3.62 into focus.
Source: TradingView
Despite intense selling pressure, DOT recovered from this level and settled at $3.78 after a decline of almost 4%. Sellers retained control on Monday as DOT slipped to $3.75 after a drop of 9.79%.
A Brief Recovery
Despite DOT’s substantial decline, it made a strong recovery on Tuesday as markets turned bullish on the eve of the elections. As a result, DOT surged to an intraday high of $3.92 before declining and settling at $3.86. Bullish sentiment intensified on Wednesday following the election results, and DOT surged by 6.48% to push above $4 and settle at $4.11, just below the 20-day SMA. However, after reaching an intraday high of $4.20 during the ongoing session, DOT has fallen back and is currently down by almost 1% and trading at $4.07.
Can Polkadot (DOT) Slip Back Below $4?
With DOT’s recovery stalling, investors wonder if it can slip below $4 again. Buyers will try to keep DOT above $4 and build momentum to reclaim crucial levels lost during the previous week. Buyers must push above the 20 and 50-day SMAs to spark a sustained recovery. A move above these levels could see DOT climb to $4.50. However, if sellers remain in control, DOT could slip below $4 and drop as low as $3.62 before recovering.
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.
