Polkadot (DOT) could not sustain momentum, failing to move past $7 and the 200-day SMA. After rising to $7.21, the price fell back into the red, eventually finishing the day 2.47% lower at $6.70.
The current session sees DOT still languishing in the red as bearish sentiment continues to dominate the market.
Bears Continue To Push Polkadot (DOT) Down
Polkadot’s bearish trajectory shows no signs of letting up as of now, with the cryptocurrency still languishing in the red as bears continue to dominate the market. DOT’s downtrend is in line with the rest of the crypto markets as they reel following Iran’s missile and drone attack on Israel. Markets are spooked by the prospect of an escalating conflict in the Middle East, with the sentiment leading to all major cryptocurrencies in the red. However, DOT’s price has been in the red for a slightly longer duration, since April 9th, to be precise.
DOT began the day at $9.05 but was unable to get past the 20-day SMA, which was acting as a strong resistance. Eventually, the cryptocurrency dropped by 4.31% to close at $8.66. However, bearish sentiment intensified as the price continued to drop, breaching key support levels at $8 and $7.50. Friday saw DOT drop by 13.48%, while Saturday saw a drop of 11.72%, which saw DOT drop below $7, and the 200-day SMA, which at this point was acting as support.
Polkadot (DOT) Analysis: Current Outlook
Sunday saw a recovery of sorts after DOT found support around the $6.40 mark and posted an increase of 7.34%. However, with the 200-day SMA acting as resistance at $7 DOT, it was unable to breach this level and settled at $6.87. Monday saw DOT continue to test the 200-day SMA, eventually breaking through and reaching a high of $7.21. However, it could not sustain this momentum, dropping below $7 to close at $6.70.
So, what’s next for DOT? Currently, buyers and sellers are struggling to take control of the session. DOT has support at the $6.40 level, and should buyers be able to take control, it could test the resistance at $7. If it fails to get past the 200-day SMA, we could see the price drop back to $6.50. For DOT to witness sustained bullish momentum, DOT must move past the 200-day resistance. Should this happen, we could see the price move to $7.50. While DOT is up by just over 1% during the ongoing session, most indicators, such as the Parabolic SAR and the MACD, are bearish. Should DOT cross $7, we could see these flip to bullish.
Polkadot’s Paradox
Despite the downturn in price, Polkadot has hit significant milestones over the past week. Latest figures indicate an all-time high in active wallets and unique accounts. Active wallets on the network hit 600,000, while unique accounts were at 5.59 million, suggesting growing interest in Polkadot. However, despite the increase in new users, transactions on the network remain muted. This situation presents an interesting paradox, with the platform attracting new users but not witnessing active network participation.
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.
