Polkadot (DOT) registered a substantial decline this week after failing to push above $6, thanks to substantial resistance.
DOT has dropped almost 6% over the past 24 hours, with sellers looking to drive the price below $5.40, where the 200-day SMA is acting as a dynamic level of support.
A Recap Of Polkadot’s (DOT) Price Action
Polkadot (DOT) registered a considerable rally in November, surging past crucial resistance levels and moving averages. However, its rally has stalled after reaching a critical level, as selling pressure forced a pullback from $6. DOT surged past the 200-day at the beginning of the previous week, registering an increase of 8.97% and settling at $5.71. However, bulls lost momentum after reaching this level, dropping over 7% to slip below the 200-day SMA and settle at $5.31. Sellers retained control on Wednesday and attempted to drive DOT below $5 as the price fell to an intraday low of $4.91. However, it recovered from this level to go above $5 and settled at $5.08, registering a decline of 4.33%.
Source: TradingView
Selling pressure registered a substantial increase as DOT slipped below $5 after registering a decline of almost 6% and settling at $4.78. Despite the overwhelming selling pressure, DOT recovered on Friday, registering an increase of almost 8% to reclaim $5 and settle at $5.16. Bullish sentiment intensified on Saturday as DOT surged past the 200-day SMA, rising 12.02% and settling at $5.78.
Bullish Sentiment Wanes
DOT attempted to go past $6 on Sunday as it surged to an intraday high of $6.14. However, bulls lost momentum at this level allowing sellers to take control. As a result, DOT registered a substantial drop, falling by 6.23% and settling at $5.42. The price recovered on Monday as DOT rallied almost 11% and settled at $6. Despite a strong performance on Monday, DOT fell back in the red on Tuesday, dropping by 3.33% and settling at $5.80. DOT saw a substantial increase in volatility on Wednesday as buyers and sellers struggled to establish control. The price surged to an intraday high of $6.12 before dropping to an intraday low of $5.54 before recovering from this level. Ultimately, sellers gained the upper hand, and DOT registered a drop of 1.21% and settled at $5.73.
DOT remains in the red during the ongoing session, with the price down 2.27% as sellers look to drive the price below the 200-day SMA.
What Next For Polkadot (DOT)
With Polkadot (DOT) tanking this week, market watchers are speculating how the current price action could play out. Some analysts believe DOT could rebound from the 200-day SMA and retest the resistance around $6. Analysts believe its next stop could be $7.50 if the price surpasses this level. On the other hand, if DOT slips below the 200-day SMA, we could see the price slip below $5.
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.
