Polkadot (DOT) has recovered after dropping to a low of $3.68 earlier today, with the price up by 1.21% as buyers look to push the altcoin back above $4.
DOT registered a substantial decline during the previous week and over the weekend, losing the crucial $4 support level as it plummeted to a low of $3.65 on Sunday.
Polkadot (DOT) Continues To Struggle
Polkadot (DOT) started the previous week on a very volatile note as buyers and sellers struggled to establish control. Sellers looked to push DOT back below $4, while buyers looked to move above the 20-day SMA. As a result, DOT dropped to an intraday low of $4, reaching an intraday high of $4.22, before falling back and settling at $4.13. Buyers took the initiative on Tuesday as DOT rose by 1.45% and settled at $4.19. However, it could not push above the 20-day SMA, reaching a high of $4.25 before dropping back to its closing level. Bullish sentiment waned on Wednesday with the 20-day SMA coming into play, and DOT managed only a marginal increase to settle at $4.20.
A Substantial Drop
Market sentiment turned bearish on Thursday as Polkadot (DOT) dropped almost 6%, slipping below a crucial support level at $4 and settling at $3.96. DOT has had strong support at $4, and market watchers expected a recovery from this level. However, despite attempting a recovery on Friday, DOT fell back into the red, dropping 1.26% to $3.91. Bearish sentiment persisted over the weekend, as DOT registered a marginal drop on Saturday to settle at $3.90. DOT continued to decline on Sunday, plummeting to a low of $3.65 before recovering and settling at $3.78 after a drop of 3.08%. Sunday’s drop also tested DOT’s multi-year support of $4.62.
Source: TradingView
The current week began with sellers in control as DOT dropped by 0.79% and settled at $3.75. With buyers entering the market at lower levels, DOT has recovered during the current session and is up by 2.40% and trading around $3.84.
Can Polkadot (DOT) Reclaim $4?
Investors are now asking whether Polkadot (DOT) can reclaim $4. This is difficult to answer because market sentiment, at least for the short term, depends on the US presidential election results. If the markets deem the results favorable, we could witness a significant rally after the results are declared. In such a scenario, the broader crypto market, including DOT, could see a substantial rally, allowing DOT to reclaim $4 and potentially move past $5.
On the other hand, should markets turn bearish, DOT could witness a drop to $3.62. Buyers are expected to enter the market at this level and prevent a further decline. However, for the short term, DOT must reclaim $4.
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.
