Polkadot (DOT) registered a substantial decline on Tuesday and Wednesday after failing to go above $6, with sellers driving the price below the 200-day SMA.
DOT had seen a substantial rally after bullish sentiment picked up following election day, with the price surging past key resistance levels to reclaim $5.
Polkadot (DOT) Surges After US Elections
Polkadot (DOT)’s rally began last Tuesday but picked up the pace on voting day, registering an increase of almost 6.48 to reclaim $4 and settle at $4.11. Bullish sentiment persisted on Thursday as DOT moved above the 20-day SMA after registering an increase of 1.46%. DOT pushed above the 50-day SMA on Friday, rising almost 4% and settling at $4.32. Bullish sentiment picked up over the weekend as DOT registered an increase of 4.18% to go above $4.50 and settle at $4.63. DOT registered a bigger rally on Sunday, surging over 13% to go above $5 and settling at $5.24 after briefly pushing above the 200-day SMA.
Source: TradingView
The current week began with DOT dropping to an intraday low of $4.98 as sellers attempted to drive the price back below $5. However, with support building at this level, buyers asserted control and pushed DOT back above $5. DOT ultimately registered an increase of almost 9$ to surge past the 200-day SMA and settle at $5.71.
A Rapid Decline
Buyers attempted to push above $6 on Tuesday as Polkadot (DOT) reached an intraday high of $5.84. However, with sellers active at $6, buyers lost momentum, and sellers took control. As a result, DOT dropped over 7% to slip below the 200-day SMA, dropping to a day low of $5.12 before settling at $5.31. Sellers retained control on Tuesday as DOT fell to an intraday low of $4.91 before pushing back above $5 and settling at $5.08, registering a drop of 4.33%. The current session sees DOT marginally down as buyers and sellers struggle to establish control.
If sellers retain control and DOT drops, the price could slip below $5. This would indicate that markets have rejected the breakout, and a drop to $4.50 could be possible. However, buyers could take control and push DOT back above the 200-day SMA towards $6 if bullish sentiment returns. The RSI was in the overbought zone, indicating a decline was expected. With the RSI back below 70, we could see bullish sentiment return to the market and witness a DOT recovery. Analysts believe a recovery is imminent and predict DOT could push above $7.
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.
