Polkadot (DOT) is struggling to stay above $4 as intense selling pressure continues to weigh down the price. A drop below $4 could see DOT fall to $3.62.
DOT has been down almost 2.50% over the past 24 hours and briefly fell to $3.95 on Wednesday when it dipped below $4.
Polkadot (DOT)’s Bearish Start To October
Polkadot (DOT) has been incredibly bearish since failing to push above $5 at the end of September. Since then, it has spent most of its time in the red, as sellers dragged the price below crucial support levels and the 20 and 50-day SMAs. DOT started the previous week with a drop of almost 7% and then fell another 6.31% on Tuesday. By Wednesday, DOT dipped to $4, and by Thursday, it fell to $3.99 as bulls struggled to mount a recovery. However, DOT finally rebounded after hitting $3.99 and ended Thursday at $4.13 after an increase of 0.73%.
A Weekend Recovery
After its marginal recovery on Thursday, DOT continued to push higher on Friday, registering an increase of 1.45% and pushing to $4.19. However, it encountered volatility on Saturday as sellers attempted to push the price back towards $4 while buyers attempted a move higher. Eventually, DOT fell by 1.19% and settled at $4.14. DOT recovered on Sunday as it registered an increase of 1.21% and moved to $4.19. However, buyers could not push higher, and DOT fell back into the red on Monday.
Selling Pressure Returns
Polkadot (DOT) attempted to push towards $4.50 on Monday as it reached a day high of $4.27. However, buyers had been unable to build momentum to sustain a bullish move, and once again, DOT stalled after reaching $4.27, allowing sellers to take over. As a result, DOT fell back into the red and dropped by 1.43% to settle at $4.13. Volatility returned on Tuesday as buyers and sellers struggled to control the session. In the end, sellers came out on top, and DOT dropped by 0.73% to $4.10.
Source: TradingView
Selling pressure intensified on Friday as sellers dragged DOT below $4 to $3.95. However, DOT recovered and pushed back above $4 thanks to strong support at this level and eventually settled at $4.02 after a drop of almost 2%. The current session sees DOT marginally up as buyers attempt to keep it above $4.
What Next For Polkadot (DOT)?
As mentioned earlier, DOT has two key support levels, the first at $4 and the second at $3.62, both of which have been tested. Bulls will do their best to keep DOT above $4. However, whether they can sustain a recovery remains to be seen, with DOT struggling to push above $4.20 since the weekend. A break above $4.20 could open the door for a move to $4.50. However, should sellers drag DOT below $4, it could drop to its multi-year support of $3.62.
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.
