Polkadot ($DOT) is again facing significant bearish pressure after its promising push to reclaim the $5 mark the previous week halted.
Polkadot ($DOT) is facing a difficult time after losing its momentum from the previous week. $DOT failed to reclaim the $5 level after reaching $4.98 on August 16 and is currently trading for $4.18.
$DOT Falls Short
Polkadot ($DOT) has been fighting against strong bearish trends since falling into the red on August 25. The previous week saw buyers hopeful as $DOT attempted to reclaim the $5 mark. Despite strong upward momentum, which saw the price reach $4.98, buyers could not push the asset beyond the crucial level, and $DOT eventually ended the week in the red. Sellers regained control of Sunday’s session, which resulted in a 3.21% decline.
$DOT’s decline continued Monday after the price dropped 5.39%. The decline saw $DOT slip below the 20-day SMA, eventually closing the session at $4.56. Strong bearish sentiment continued on Tuesday as sellers tried to drive $DOT below its $4.20 support. Buyers, however, stepped in, preventing $DOT from declining further. $DOT closed the session at $4.38, representing a 4% drop. Downward momentum continued through Wednesday, resulting in a 2.74% drop. Strong demand for $DOT at lower levels on Thursday allowed buyers to enter, pushing $DOT to a daily high of $4.40. As buyers took control during the session, driving the price up, demand for $DOT at higher levels stalled, resulting in a marginal decline to end the session at $4.25. Despite registering a decline on Thursday, buyers did, however, manage to keep $DOT above its $4.20 support.
$DOT tested its support on Friday as sellers drove the price to a day low of $4.10. Strong demand for $DOT at lower levels attracted buyers who eventually pushed the price to $4.29, a 0.94% daily increase. A marginal decline on Saturday saw $DOT close the session at $4.25.
Where Does $DOT Go Now?
Market sentiment is currently uncertain. If bullish sentiment steps in and buyers can keep $DOT above its support level and push $DOT up to $4.50, the price could continue its journey to $5. A negative swing in sentiment, however, could see the opposite happen. Unfortunately, sellers appear to have taken control of the current session and have pushed $DOT below its support. $DOT is trading for $4.18, a 2.50% decline. Should sellers maintain control of the session, $DOT could drop to $4.
Anything could happen going forward. We have seen increased demand for $DOT at this lower level, which may motivate buyers to step in and initiate relief. However, if the $4 level is breached, it may trigger a spiral that could set $DOT on the way to its multi-year support level of $3.60.
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.
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