Polkadot is on the verge of a crucial trading level, with the price testing the $5 level. DOT has dropped by almost 12% over the past week and could break lower than $5 should buyers fail to counter the selling pressure.
DOT is currently in a descending channel pattern, which is typically followed by higher prices, but only if the price can cross above the upper trend line.
Polkadot (DOT) Looks To Stay Above $5
Polkadot (DOT) is attempting to stave off selling pressure that has dominated since last Saturday as buyers attempt to keep the price afloat above $5. DOT had been trading between $5.50 and $6.50 since the beginning of June. However, bears have overwhelmed the lower end of this range, with the price slipping below $5.50 this week. DOT, which was already on a downward trajectory, has been in the red all week after sellers thwarted buyers’ attempts to push toward $6. DOT fell by 1.05% on Monday and a further 2.30% on Tuesday to settle at $5.53.
Source: TradingView
The price slipped below $5.50 on Wednesday after a drop of 2.53% yanked DOT down to $5.39. Selling pressure intensified on Thursday, as seen in the chart above. Sellers pushed DOT down to a low of $5.02. However, thanks to strong demand at this level, DOT was able to push back and settle at $5.34, a decline of 0.93%. DOT could not recover on Saturday as well, as the price fell by 4.12% to $5.12. The current session sees DOT up by 1.17% as buyers enter the market close to its support level.
Can Buyers Retake Control?
Polkadot (DOT) has rebounded from $5 twice over the past couple of sessions and has done so during the ongoing session. This indicates strong support and demand at this level. However, demand is drying up at higher levels, leading to buyers losing momentum. Buyers must push above $5.50 for demand to pick up. Consolidating above this level could help push chart a path to retest $6, a level it has been unable to cross since the beginning of July. The RSI approaching oversold conditions could indicate that DOT can finally stem the drop and look to recover lost ground.
Polkadot (DOT) Still Making Huge Strides
Despite its price struggles, Polkadot (DOT) is making significant strides within the crypto ecosystem, demonstrating its interoperability and utility. Recent developments have only further highlighted its influence in several sectors. Mythos has emerged as one of the standout projects in the Polkadot ecosystem, having clocked over 5 million players in its first year. Polkadot is also working to address issues that have historically hindered adoption. The Nova Wallet has significantly improved its network UI, making it accessible to users.
Polkadot’s on-chain metrics also remain strong, with the network reporting 1.3 million daily holders. Data from Polkadot Subscan shows a 19.21% increase in daily active users. Analysts are also optimistic about the DOT price, with one predicting a 2x bull rally.
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.
