Polkadot (DOT) stalled at $4.50 yet again, falling back in the red during the ongoing session. DOT is currently down by almost 4%, although it is up by almost 6% if we look at the previous 7 days.
DOT had made an impressive recovery after hitting a low of $3.95, and after making a strong start to the current week, market watchers were hopeful it could push above $4.50.
Polkadot (DOT) Fails Back Yet Again
Polkadot (DOT) ’s impressive recovery stalled at a familiar barrier as the altcoin lost momentum after reaching $4.50, a level that has been acting as a stubborn level of resistance. DOT’s recovery began on Thursday when it registered an increase of 1.49% to recover from a day low of $3.95 to settle at $4.08. The altcoin continued to push higher on Friday, rising by 2.21% and reaching $4.17. Saturday got off to a strong start as DOT raced to a day high of $4.26. However, sellers pushed the price back down, eventually settling at $4.20 after an increase of 0.72%. DOT fell back into the red on Sunday as sellers dragged it to a low of $4.09. However, after recovering from this level, it settled at $4.16, a drop of 0.95%.
Source: TradingView
DOT started the current week on a very bullish note as the crypto market made a strong recovery. As a result, it registered a jump of 5.05% to go past the 20 and 50-day SMAs and settle at $4.37. DOT faced significant volatility on Tuesday as buyers attempted to push it above $4.50 while sellers attempted to drag it back below the moving averages. As a result, DOT rose to a day high of $4.53 and fell to a day low of $4.29 before settling at $4.41, an increase of 0.92%.
However, despite the strong recovery, DOT has fallen back into the red during the ongoing session. Sellers pushed the price down to a low of $4.30. However, DOT was able to rebound from this level and is currently trading around the $4.37 mark, down by 0.91%.
A Familiar Trajectory
Polkadot (DOT) ’s rejection from $4.50 has become a familiar scenario, with the altcoin failing to push beyond it previously as well. Should sellers continue dominating the session, DOT could drop below the 20- and 50-day SMAs and fall back to $4 before recovering. On the other hand, should buyers retake the session, DOT could chart a path back to $4.50. A break above this level could be seen as bulls gaining the upper hand, with DOT going on to test the resistance at $5.
A Decline Or Parabolic Rally?
Views are mixed on Polkadot’s (DOT) trajectory. Some analysts believe the altcoin faces a potential decline, with metrics suggesting a bearish trend as long as DOT trades below the 200-day SMA. One analyst stated that investors must adjust their strategies and look for further declines. Meanwhile, others have stated DOT could go on a parabolic rally, with one analyst drawing parallels to Fantom (FTM), stating that DOT’s recent price movement was similar to that of FTM.
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.
