Polkadot (DOT) has made a strong recovery since dropping to a day low of $3.95 on Thursday and has started the current week on a very bullish note, surging past the 20 and 50-day SMAs.
DOT is up by 5.27% over the past 24 hours and has registered a jump of almost 9% over the past week as buyers look to push above $4.50 and towards $5.
Polkadot (DOT) Registers Impressive Recovery
Polkadot (DOT) started the previous week on a bearish note after slipping below the 20 and 50-day SMAs the week prior. By Wednesday, DOT dipped below $4, touching a day low of $3.95 before settling at $4.02, a drop of almost 2%. DOT slipped to $3.95 again on Thursday but rebounded strongly to push above $4 and settle at $4.08 after an increase of 1.49%. DOT remained positive on Friday as well, rising by 2.21% to move to $2.17, as buyers looked to push the price above $2, which had been acting as a stubborn level of resistance.
Source: TradingView
The weekend began with DOT racing to a day high of $4.26. However, buyers soon lost steam in the face of intense selling pressure. As a result, DOT fell back and settled at $4.20, registering an increase of 0.72%. As mentioned earlier, $4.20 is a stubborn level of resistance, and DOT fell back in the red on Sunday thanks to strong selling pressure at this level. DOT fell to a day low of $4.09 before buyers propped up the price, pushing it to $4.16, a drop of 0.95% from Saturday.
Polkadot (DOT) Makes A Strong Start To The Week
Polkadot (DOT) started the current week on a very bullish note, surging by 5.05% to go past $4.20 and the 20 and 50-day SMAs and settled at $4.37. The current session saw DOT surge to $4.53, a level from which it has been rejected before. As we can see in the price chart, DOT initially rose to $4.53 but has since retreated and is currently trading around the $4.44 price level, an increase of 1.40%.
Buyers will look to push DOT above $4.50. A move past this level is crucial for a push to $5 to materialize. On the other hand, should sellers take control of the session, DOT could fall back to $4 and restart the journey back to $4.50 all over again. One analyst has predicted that a breakout is imminent, which could see DOT surge past $10.
Polkadot Slashes Spending, Reveals Q3 Financial Report
Polkadot released its treasury report, revealing it had slashed spending by half in Q3. The protocol spent $27.3 million on projects, half of what rival Ethereum spent in the same period. According to the report, the treasury has just over $150 million worth of DOT available, estimated to last around a year and a half at current prices.
A significant chunk of the budget was used for software development ($12 million), which was allocated to projects such as building a Polkadot-Ethereum bridge and improving wallet functionality. The second-biggest expense was wallet functionality, with almost $10 million allocated for ads, meetups, events, and conferences. Polkadot manages its treasury across multiple chains and assets within the Polkadot ecosystem, supporting a number of governance initiatives, decentralized finance (DeFi) operations, and liquidity provisions.
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.
