Polkadot (DOT) has surged past $4 as the crypto market registered a strong recovery, buoyed by the prospect of Donald Trump winning the US presidential election.
The crypto market has witnessed an unprecedented surge today as Republican candidate Donald Trump stands on the brink of a historic re-election.
Polkadot (DOT) Sheds Recent Bearish Sentiment
Polkadot (DOT) has registered a substantial increase over the past couple of sessions, a major relief to investors. DOT is currently up almost 5%, buoyed by the prospect of a Trump presidency. Trump has promised to support crypto and make the US the crypto capital of the world. As we can see in the price chart, DOT had declined substantially during the previous week after failing to push above the 20-day SMA. Additionally, the crypto markets were already in a bearish phase, with predictions of a tight contest between Donald Trump and Kamala Harris.
The combination of market factors and DOT’s recent struggles led to the price dropping substantially on Thursday. DOT dropped to an intraday low of $.89, slipping below the crucial support level of $4.However, it recovered from this level but could not push back above $4 and settled at $3.96. DOT continued to decline on Friday after buyers failed to mount a recovery and dropped by 1.26% to settle at $3.91. Bearish sentiment intensified over the weekend as DOT registered a marginal drop on Saturday before plummeting to a low of $3.65 on Sunday, bringing DOT’s multi-year support of $3.62 into focus once again.
Source: TradingView
DOT recovered from this level to $3.78, marking a substantial decline of 3.08%. Sellers remained in control on Monday as DOT slipped to $3.75 after a drop of 0.79%. However, as markets recovered on Monday, DOT registered an increase of 2.93% and moved to $2.86. DOT is up over 5% during the current session as crypto markets surge and reached an intraday high of $4.13, before declining marginally. Currently, DOT is trading at $4.05, with buyers looking to build momentum and push the price higher.
Can Polkadot (DOT) Reclaim Previous Levels?
With DOT recovering, investors and analysts are speculating if it can reclaim crucial levels. The first levels DOT must push above are $4.20 and the 20 and 50-day SMAs. A break above these levels opens the door for a move to $4.50. Analysts expect a buoyant market if Trump is declared the winner. In such a scenario, DOT could test the resistance at $5. On the other hand, if volatility returns to the market and sentiment turns negative, DOT could slip back below $4.
Polkadot’s Latest Collaboration
Polkadot’s (DOT) jump in price can also partially be attributed to its latest collaboration with SP Negócios, São Paulo’s investment and export promotion agency. The partnership aims to foster innovation among companies in Sao Paulo. The collaboration will allow companies and citizens in Sao Paulo to access blockchain programming training through Código Brazuca’s content starting in December. Additionally, the program is free and will soon be available online. Gustavo J. Massena, decentralized business developer at Polkadot, stated,
“The partnership between Polkadot and SP Negócios will contribute to the training of Blockchain Programmers and is open to bringing technology to companies in São Paulo, whether they are startups, small and medium-sized enterprises, or large corporations seeking to invest in or adopt the technology.”
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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