Polkadot (DOT) has made an impressive recovery after registering a substantial decline during the previous week when it fell to a low of $4.69.
DOT has gained almost 7% during the past week, recovering after finding support, and is now looking to push above $6, a key resistance level.
Polkadot (DOT) Makes Impressive Recovery From Record Lows
Polkadot (DOT) was trading as low as $3.65 at the beginning of the month. However, the altcoin has made a stellar recovery to go above key moving averages and reclaim key resistance levels, surging past $5 and $6. DOT remained considerably bearish for months, but the daily chart indicates that the market outlook has turned positive as bulls took control in the past few weeks and drove the price higher.
Last week, DOT began a fresh recovery after dipping below $5 and is currently testing the resistance at $6, a level it was previously rejected from.
A Positive Start Turns Negative
With Polkadot (DOT) surging following the elections, DOT began the previous week on a bullish note, registering an increase of almost 9% to go past the 200-day SMA and settle at $5.71. Buyers attempted to push the price towards $6 but were unsuccessful as sellers took control and drove DOT down by 7.01%. As a result, DOT slipped below the 200-day SMA and settled at $5.31. Bearish sentiment persisted on Wednesday as DOT continued to drop, falling by 4.33% and settling at $5.08. DOT slipped below $5 on Thursday after registering a drop of almost 6% and settling at $4.78.
Recovery And Key Levels
Despite overwhelming selling pressure, Polkadot (DOT) made a strong recovery on Friday, rising almost 8% to reclaim $5 and settle at $5.16. Saturday saw DOT register an increase of 12.02% as it surged past the 200-day SMA and $5.50 to settle at $5.78. DOT raced to an intraday high of $6.14 on Sunday as buyers sought to take advantage of the bullish momentum and drive the price above $6. However, with sellers active above $6, buyers lost momentum, and DOT registered a drastic fall, dropping over 6% and settling at $5.42.
Source: TradingView
DOT recovered on Monday thanks to the 200-day SMA, which acted as a dynamic level of support. As a result, DOT registered an increase of 10.70% and settled at $6. Despite the bullish sentiment, it was unable to go above this level. The current session sees DOT down by 4% as it struggles to push above $6, faced with considerable selling pressure at that level. A bullish MACD tells us the trend around DOT is currently bullish, with buyers unwilling to cede ground to sellers. However, the RSI is close to the overbought zone, indicating we could see a slight decline in the short term.
DOT has support at $5.40. If this level is breached, we could see the price fall to $5 or $4.50. On the other hand, if buyers can retake control of the session, DOT could retest $6. A break above this level could see DOT push towards $6.50.
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.
