Polkadot (DOT) has struggled during the market’s latest downturn, with its price turning bearish after another failed attempt to conquer the $5 price level.
Since the past week, DOT has struggled to push above $4.20, as intense selling pressure and growing bearish sentiment weigh down on the asset’s price.
Polkadot (DOT) Endures Bearish Week
Polkadot (DOT) recovered on Thursday despite falling to a day low of $3.99, as buyers mounted a recovery. As a result, DOT reclaimed $4 but only registered a marginal increase of 0.73% to settle at $4.13. This hinted that bullish momentum was weak at best. DOT continued to recover on Friday, registering a rise of 1.45% to settle at $4.19. However, the weekend began on a negative note as DOT dropped by 1.19% to $4.14 before recovering on Sunday to register an increase of 1.21% and move to $4.19.
Source: TradingView
The current week began with DOT attempting a move towards $4.50. However, it could only push to $4.27 before sellers took control and pushed the price back down. DOT eventually dropped by 1.43% and settled at $4.13. DOT continued to decline on Tuesday after facing considerable volatility, dropping by 0.73% and settling at $4.10.
Another False Dawn?
Bearish sentiment intensified on Wednesday as DOT fell below the crucial $4 support level, falling to an intra-day low of $3.95. Buyers eventually pushed DOT back above $4, and it settled at $4.02 after a drop of almost 2%. Sellers pushed DOT below $4 once again on Thursday, but buyers countered the selling pressure thanks to strong support at this level. As a result, DOT recovered, increasing 1.49% to move to $4.08. The current session sees DOT up by almost 1% as buyers look to push DOT toward $4.20.
But will DOT be able to sustain this recovery? Besides being unable to push above $5, DOT has struggled to move above $4.50 and, more recently, $4.20, being dragged down from this level earlier this week. As a result, DOT is struggling to gain momentum and break above key levels. Buyers must ensure DOT stays above $4 for any bullish momentum to build. A drop below this key level would mean more losses as DOT would likely drop to its multi-year support level of $3.62.
If buyers manage to build momentum, they must first push above $4.20 and the 20 and 50-day SMAs to get past the $4.50 level, not an easy task. A break above these levels could see DOT retest the $5 level once again. However, the MACD recently completed a bearish crossover, with the MACD line slipping below the Signal line, indicating that sellers have the upper hand.
Can Mythos Spark A Revival?
Mythos recently announced it is moving its Mythical Market and NFT collections to Polkadot. It hopes to leverage Polkadot’s EVM module to guarantee EVM address compatibility. The move will also allow developers to utilize the Substrate framework, built on WebAssembly. Mythical Market’s integration into Polkadot aims to enhance the trading of secondary assets on Polkadot. Additionally, the decentralized nature of the platform guarantees the security of all transactions on the Mythos parachain.
With over 5 million wallets being transferred to Polkadot, the network is seeing a surge in activity, which could positively impact the price of DOT.
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.
