Polkadot (DOT) stalled after encountering resistance at $4.50 and is down almost 1% during the current session as sellers look to drive it below the 20-day SMA.
Despite the drop in the ongoing session, DOT has had a positive week. It is up 2.34% over the past 24 hours and almost 9% over the past seven days, having pushed above the 20-day SMA on Thursday.
Polkadot (DOT) Faces Resistance At $4.50
Polkadot overcame strong selling pressure on Friday to consolidate its position above the 20-day SMA. However, it was expected to encounter resistance at the $4.50 level, which sellers were expected to defend. DOT had dipped below $4 on Friday (September 6), dropping to a day low of $3.82 before buyers could prop the price to $3.96. Thanks to strong support at this level, it reclaimed $4 the following day, registering a 3.28% increase to settle at $4.09. DOT continued to push higher on Sunday, rising 1.96% and settling at $4.17. Sellers attempted to take control on Monday but were unsuccessful as buyers continued to exert influence. DOT eventually registered a jump of 2.88% and moved to $4.29, settling just below the 20-day SMA.
With the 20-day SMA coming into play as a dynamic level of resistance, DOT fell back in the red on Tuesday, dropping almost 1% and settling at $4.25.
Bearish Pressure Intensifies
Selling pressure intensified on Wednesday as DOT fell to a low of $4.07. Once again, demand picked up at lower levels, allowing DOT to recoup some of the losses. It eventually settled at $4.19, down 1.41%. Demand picked up on Thursday as buyers returned to the market. As a result of bullish sentiment gathering steam, DOT registered an increase of 2.63% to push above the 20-day SMA and settled at $4.30. DOT’s push above the 20-day SMA was hugely significant, signaling that bears were losing momentum and demand was picking up. The strong bullish sentiment can be gauged by the MACD, which flipped to bullish at the beginning of the week.
Source: TradingView
DOT continued to push higher on Friday, consolidating its position above the 20-day SMA, eventually registering an increase of just over 3% to settle at $4.43. DOT was expected to face strong resistance at $4.50, and as expected, selling pressure increased as it got closer to this level. DOT is currently down by 0.68% as buyers and sellers struggle to establish control.
Can Polkadot (DOT) Resume Its Upward Trajectory?
So what next for DOT? DOT faces immediate resistance at $4.50 and the 50-day SMA. Should buyers retake control of the session, DOT could test these levels. A move above them could make a break to $5 a possibility. On the other hand, sellers will look to push DOT back below the 20-day SMA. However, DOT has strong support at $4, and sellers are losing momentum at lower levels, so we can expect the price to rebound quickly. For the moment, buyers have the upper hand.
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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