Polkadot (DOT) saw a substantial drop on Monday as overall market sentiment and DOT’s recent bearish trajectory saw it begin the week with a decline of almost 7%.
However, DOT has rebounded during the ongoing session, with buyers entering the market around the 50-day SMA. The altcoin has strong support at around $4.50, preventing further decline.
Polkadot (DOT)’s Ascent To $5
Polkadot was extremely bullish last week and was generally positive since rebounding from a low of $3.98 on September 18. The previous week began with DOT moving above the 50-day SMA on Monday after an increase of 3.38% and settling at $4.46. Tuesday saw bullish sentiment continue as DOT pushed above $4.50, a crucial level, and settled at $4.64. DOT experienced considerable volatility on Wednesday as buyers and sellers struggled to establish control. Ultimately, neither could influence the price, and DOT remained at $4.64. However, bullish sentiment returned on Thursday as DOT registered an increase of 3.66% and settled at $4.81. DOT attempted a move past $5 on Friday, reaching an intra-day high of $4.97. However, with sellers active at this level, buyers lost steam, and DOT eventually settled at $4.89 after registering an increase of 1.66%.
The Descent Back To $4.50
With strong selling pressure at $5, sellers overwhelmed buyers. As a result, DOT fell back into the red, a familiar pattern when it reached this level, having been rejected twice before. DOT dropped by 2.04% on Saturday, falling to $4.79 and 0.42% on Sunday to end the weekend at $4.77. Bearish sentiment intensified on Monday as DOT began the new week with a decline of almost 7%, dragging the price below $4.50 to $4.44, as sentiment across the crypto markets turned negative. However, DOT has rebounded during the current session, up by almost 2%, trading at $4.52.
Source: TradingView
What Next For Polkadot (DOT)?
So will DOT fall back below $4.50 or chart a path back to $5? DOT has strong support at around $4.50. Sellers will have a tough time pushing DOT below this level, and the most likely scenario is the price rebounding after hitting this level. But will DOT be able to climb above $5? DOT was extremely bullish leading up to its push to $5 during the previous week, yet could not push above it. If buyers can gather momentum, we could see DOT push back to $5. Whether it can push above this level remains to be seen.
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.
