Polkadot (DOT) is up almost 3% over the past 24 hours as it continues a steady yet sluggish recovery, which has seen it push to $4.20.
DOT has been extremely bearish over the past couple of weeks. It has seen its support at $4 tested on multiple occasions and dropped to intra-day lows of $3.95.
Polkadot (DOT) Recap
Polkadot (DOT)’s turn into bearish territory began on September 27, when it failed to push above $5, a crucial level of resistance. After being rejected from this level, DOT gave up all of the gains made leading up to reaching $5 in a matter of days, plummeting below the 20 and 50-day SMAs after registering substantial declines. By October 2, DOT was testing the $4 support level and slipped below it the following day, when it dipped to a day low of $3.99 before recovering and pushing back above $4.
DOT’s recovery continued on Friday (October 4) after it registered an increase of 1.45% and settled at $4.19. However, with resistance now building at $4.20, DOT fell back into the red on Saturday, dropping by 1.19% and settling at $4.14. Buyers regained control on Sunday as DOT ended the weekend positively, registering an increase of 1.21% and settling at $4.19.
Unable To Move Past $4.20
Despite ending the weekend on a positive note, Polkadot (DOT) found the going tough as it started the week on a bearish note, with sellers preventing a substantial move past $4.20. DOT began Monday by reaching a day high of $4.27 but fell back in the red after bulls lost momentum and dropped by 1.43% to $4.13. The price continued its downward trajectory on Tuesday, falling by 0.73% and settling at $4.10. Bearish sentiment intensified on Wednesday as sellers pushed DOT below $4 to a day low of $3.95. However, buyers pushed DOT back above $4, settling at $4.02 after a drop of 1.95%.
Source: TradingView
DOT slipped below $4 once again on Thursday, dropping back to $3.95. Once again, buyers propped the price back up above $4. However, buyers retained control this time, and DOT registered an increase of 1.49% and moved to $4.08. Buyers also retained control on Friday, with DOT registering an increase of 2.21% to $4.17. The current session shows that DOT maintains its upward trajectory, with the price up by 0.72% and trading around the $4.20 mark.
Can Polkadot (DOT)’s Recovery Continue?
Market watchers and investors are now wondering if DOT can sustain its latest attempt at a recovery. DOT had a similar recovery the previous weekend but stalled around the $4.20 level and fell back to $4. With DOT currently hovering at the $4.20 mark, it remains to be seen if it can break above this level and push on to $4.50. However, before it reaches $4.50, it must push above the 20 and 50-day SMAs. A rebound from its well-established support levels could see DOT push above $4.50 and even the crucial $5 level.
Despite the uncertainty around DOT, some analysts are still positive about the altcoin. DOT registered over 50% of green days over the past month, with price volatility of just over 5%. One prediction indicates that DOT could see a significant surge in 2025, potentially increasing its value to $20. As such, many who bought the dip expect a significant investment return over the next few months.
Meanwhile, with Mythos announcing it is moving its Mythical Market and NFT collections to Polkadot, the network is reporting a surge in activity. Over 5 million wallets are being transferred to the network, something investors and DOT holders hope will spark a revival.
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.
