Polkadot (DOT) is testing the resistance at $6 as bullish momentum builds, sparking optimism among traders that DOT’s upward trajectory is set to continue.
DOT is up almost 3% over the past 24 hours and nearly 19% over the past week, as it recovered after registering a substantial decline during the previous week.
Polkadot (DOT) Momentum Builds
Polkadot (DOT) has been on a tear since falling to an intraday low of $3.65 at the beginning of November. DOT has made an astonishing recovery since dropping to those lows, reclaiming $4, a crucial support level, and surging past the 20 and 50-day SMAs after the US elections. By November 10, DOT had reclaimed $5 after registering an increase of over 13%. DOT went above the 200-day SMA on Monday after an 8.97% increase, which pushed the price to $5.71. However, DOT fell back on Tuesday, registering a sharp decline of 7.01% to slip below the 200-day SMA and settle at $5.31. DOT declined further on Wednesday, falling over 4% and settling at $5.08.
Source: TradingView
DOT slipped below $5 on Thursday after the price fell almost 6% and settled at $4.78. Despite considerable selling pressure, DOT recovered on Friday to reclaim $5 and settled at $5.16 after an increase of 7.95%. Bullish sentiment intensified on Saturday as DOT surged over 12% to move above the 200-day SMA and settle at $5.78.
Can Polkadot (DOT) Go Above $6?
Polkadot (DOT) surged past $6 on Sunday, rising to an intraday high of $6.14 as buyers attempted to consolidate above $6. However, with sellers active at this level, DOT fell back, dropping over 6% and settling at $5.42. With the 200-day SMA acting as a dynamic level of support, DOT recovered, rallying by almost 11% to reach an intraday high of $6.10 before declining and settling at $6. Despite Monday’s rally, DOT fell back in the red on Tuesday as sellers overwhelmed buyers. DOT eventually registered a drop of 3.33% and settled at $5.80.
DOT is experiencing significant volatility during the ongoing session as sellers look to drive the price below $5 while buyers look to push it above $6. Currently, DOT is up almost 2% and trading around the $5.90 price level.
DOT has reported a significant increase in its market capitalization, currently at $9 billion. Trading volume has also reported a substantial jump and currently stands at $519 million. The MACD is currently bullish, indicating strong buyer sentiment. The RSI had climbed into the overbought zone, which is why a decline was expected. Analysts predict that if DOT can go past $6, DOT could target $10.
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.
