Polkadot Price Analysis: DOT Battles To Stay Above $7

By Taaza Facts

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Polkadot Price Analysis: DOT Battles To Stay Above $7

Polkadot (DOT) is battling to stay above $7 after a weekend dominated by sellers. The price dropped to $6.93 on Sunday after considerable gains during the previous week. 

Polkadot (DOT) had a fairly strong showing during the previous week, rising by 6,58% over the past seven days. 

Polkadot (DOT) Drops Below $7 After Strong Week 

After a strong week, Polkadot (DOT) fell back into the red over the weekend, slipping back below the crucial $7 mark. DOT started the previous week with a highly volatile day that saw the price go as high as $6.82 and as low as $6.43 before settling at $6.67. Tuesday saw sellers push the price significantly lower, dropping DOT by 2.83% to $6.48. However, as seen in the price chart, DOT has strong support at $6.40, and the following session saw the price soar by 7.44% and go past the 20-day SMA and settle at $6.96. However, it was unable to move past the $7 mark.

DOT did go past $7 on Thursday in yet another volatile session that saw sellers push the price down to $6.82 before it recovered and settled at $7.03. Friday saw buyers tighten their grip on the market, with DOT registering an increase of 2.42% and settling at $7.20. However, bears were able to reverse the bullish momentum over the weekend, pushing DOT down marginally on Saturday. The selling pressure intensified on Sunday, with DOT dropping below the 20-day SMA to $6.93. While many expected the 20-day SMA to act as a level of support for DOT, sellers were easily able to breach this level. 

The current session sees DOT at $7 as buyers look to reestablish control and push DOT back above $7. 

Is Polkadot (DOT) Following A Similar Pattern?

As we can see in the price chart above, DOT has a strong level of support that has been tested on multiple occasions but has held firm, with the price making a strong recovery from this level. However, the chart also shows us that DOT has been oscillating between $6.40 and $7.50 for over a month. The recent rejection and drop over the weekend could see DOT drop back to its support level before making a quick recovery, a pattern that has been repeated on three occasions.

 

If DOT has to make any substantial movement and break this pattern,  it must first move past $7.50. Should this happen, we could see DOT move to $8 and potentially $8.50. However, we must also note that the 200-day SMA and the 50-day SMA have performed a bearish cross and take into account their impact on the DOT price. The MACD, on the other hand, is still bullish, indicating robust buying activity.

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.


Taaza Facts

I am a multifaceted content creator with expertise in blogging, Finance, and Cryptocurrency reviews. My creative journey involves weaving captivating stories in blogs, designing aesthetically pleasing and functional websites, and dissecting the nuances of cinema. We are dedicated to sharing our passion and insights with a global audience.

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