Polkadot (DOT) has registered a sharp decline over the past 24 hours as its rally stalled at the $5.70 mark, with selling pressure driving the price down.
DOT posted a stunning rally following the US elections, surging past key resistance levels to reclaim $5. The altcoin is up 25% over seven days despite registering a considerable drop during the past two sessions.
Polkadot’s (DOT) Stunning Post-Election Rally
Polkadot (DOT) shed its recent bearish sentiment last week as it recovered after dropping to a low of $3.65, bringing its multi-year support into focus. However, DOT recovered from this level, rising almost 3% on Tuesday to settle at $3.86. Bullish sentiment intensified on election day, as DOT rose 6.48% to reclaim $4 and settle at $4.11, just below the 20-day SMA. DOT pushed above the 20-day SMA on Thursday rising by 1.46% and settling at $4.17. DOT went above the 50-day SMA on Friday after rising almost 4% and settling at $4.32.
Source: TradingView
Bullish sentiment intensified on Saturday as DOT registered an increase of 7.18% to go above the resistance at $4.50 and settle at $4.63. With DOT above key resistance levels and moving averages, bulls took control, and DOT surged over 13% on Sunday, reaching an intraday high of $5.48 before declining and settling at $5.24. Bulls retained control on Monday as DOT surged past the 200-day SMA despite facing considerable selling pressure and settled at $5.71 after an increase of almost 9%.
Correction Or Return Of Bearish Sentiment
However, the Polkadot (DOT) rally stalled after reaching this level thanks to selling pressure around $6. As a result, buyers lost momentum, and sellers took control. With sellers in control, DOT fell back in the red on Tuesday, falling just over 7% to slip back below the 200-day SMA and settling at $5.31 after falling to an intraday low of $5.12. The current session sees sellers retain control as they look to push DOT below $5. As we can see in the price chart, DOT had fallen to an intraday low of $4.92 but recovered from this level to climb back above $5. DOT is currently down by 4.33% and trading at $5.08.
DOT’s decline in recent sessions can be attributed to the broad rally in the crypto market also witnessing a pause. Bitcoin (BTC) registered a notable drop after briefly touching $90,000 and dragged the market, including DOT down. So what next for DOT? If DOT slips below $5, it could drop to $4.60. On the other hand, if bullish sentiment returns to the market, DOT could resume its upward trajectory and test the resistance at $6. If markets turn bullish, a move past $6 cannot be ruled out.
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.
